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The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is
The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the icon to view the budgeted income statement.) Read the requirements. Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. Begin by determining the sales mix. For every 1 deluxe unit(s) sold, standard units are sold. Data table Standard Carrier Deluxe Carrier Total 187,500 62,500 250,000 Units sold Revenues at $28 and $50 per unit $ 5,250,000 $ 3,125,000 $ 8,375,000 3,375,000 1,875,000 5,250,000 Variable costs at $18 and $30 per unit $ 1,875,000 $ 1,250,000 Contribution margins at $10 and $20 per unit 3,125,000 2,250,000 Fixed costs $ 875,000 Operating income
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