3 brease version 5.0. It divides its customers into Keyz 1-2-3 is a top-selling electronic spreadsheet product Key is about to release version 5.0. It divides or earlier versions). two groups: new customers and upgrade customers (those who p u rchased Keyz 1-2-3, 4.0 or earlier ve selling prices and Although the same physical product is provided to each customer groue sable differences exist in selling prices variable marketing costs (Click the icon to view the price and cost information.) The fixed costs of Keyz 1-2-3 5.0 are $12.000.000. The planned salesmi in units is 60% new customers and 40% upgrade customers Read the requirements Requirement 1. What is the keyz 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle (1) units are sold to new customers, and - units are sold to customer who bought upgrades. 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 in bundles = Breakeven point in bundles The breakeven point is units for new customers and units for upgrade customers Requirement 2. If the sales mix is attained, what is the operating income when 200,000 units are sold? New customers Upgrade customers Total Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income Requirement 3. Show how the breakeven point in units changes with the following customer mixes: a. New 40% and Upgrade 60% and b. New 90% and Upgrade 10%. a. Begin by determining the sales mix for scenario "a". units are sold to new customers, and (6) units are sold to For every bundle. (5) - customers who bought upgrades. Calculate the breakeven point in bundles for scenario "a", then determine the breakeven point for new customers and upgrade customers The breakeven point is bundles. This translates to a breakeven point of units for new customers and units for upgrade customers. b. Now determine the sales mix for scenario "b". For every bundle (7) who bought upgrades units are sold to new customers, and (8) units are sold to customers then determine the break p oint for new customers and upgrade Calculate the breakeven point in bundles for scenario customers. units The breakeven point is for new customers and bundles. This translates to a breakeven point of units for upgrade customers c. Comment on the results contribution margin per unit than As Keyz increases its percentage of new customers, which have a (9) upgrade customers, the number of bundles required to break even (10) 1: Data Table New Customers $ 295 Upgrade Customers $ 105 Selling price Variable costs Manufacturing $ $ 20 75 Marketing 95 Contribution margin 2: Requirements 1. What is the keyz 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 200.000 total units are sold? 3. Show how the breakeven point in units changes with the following customer mixes: a New 40% and upgrade 60% b. New 90% and upgrade 10% c. Comment on the results (1) 01 (2) 01 O2 (3) O O Contribution margin per bundle O Contribution margin per unit Fixed costs Revenues O Variable costs Revenues O Variable costs (5) 04 O Contribution margin per bundle O Contribution margin per unit Fixed costs 0000 oooo (8) 01 07 02 09 (9) higher Olower (10) O decreases increases