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The StackpoleStackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as

The StackpoleStackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows:
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Part 1
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.
Part 2
Determine the formula used to calculate the breakeven point when there is more than one product sold. Then, enter the amounts in the formula to calculate the breakeven point.
Part 3
Fixed costs
-:
=
Breakeven point in bundles
-:
=
Part 4
The breakeven point is
standard units and
deluxe units.
Part 5
Requirement 2. Compute the breakeven point in units(a) if only standard carriers are sold and(b) if only deluxe carriers are sold.
Part 6
(a) If only standard carriers are sold, the breakeven point is
units.
(b) If only deluxe carriers are sold, the breakeven point is
units.
Part 7
Requirement 3. Suppose 250 comma 000250,000 units are sold but only 50 comma 00050,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem?
Compute the operating income if 250 comma 000250,000 units are sold but only 50 comma 00050,000 of them are deluxe.
Standard Carrier
Deluxe Carrier
Total
Units sold
Revenues at $28 and $50 per unit
Variable costs at $18 and $30 per unit
Contribution margin
Fixed costs
Operating income
Part 8
Before calculating the breakeven points, determine the new sales mix.
For every 1 deluxe carrier sold,
standard carriers are sold.
Part 9
Compute the breakeven point in units, assuming the new sales mix. (Round your answers up to the next whole number.)
The breakeven point is
standard units and
deluxe units.
Part 10Data table
Compare your answer with the answer to requirement 1. What is the major lesson of this problem?
The major lesson of this problem is that changes in the sales mix change
breakeven points and operating incomes
neither breakeven points nor operating incomes
only breakeven points
only operating incomes
. In this example, the budgeted and actual total sales in number of units were identical, but the proportion of the product having the
higher
lower
contribution margin declined. Operating income
improved
stayed the same
suffered
and the breakeven point
fell
rose
stayed the same
.
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