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

	Standard Carrier	Deluxe Carrier	Total
Units sold	200,000	50,000	250,000
Revenues at $25 and $45 per unit	$5,000,000	$2,250,000	$7,250,000
Variable costs at $15 and $25 per unit	3,000,000	1,250,000	4,250,000
Contribution margins at $10 and $20 per unit	$2,000,000	$1,000,000	3,000,000
Fixed costs			2,475,000
Operating income			$525,000

1.	Compute the breakeven point in units, assuming that the company achieves its planned sales mix.
2.	Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold.
3.	Suppose 250,000 units are sold but only 25,000 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?