Question

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:



Required
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 240,000 units are sold but only 40,000 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 thisproblem?


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  • CreatedJanuary 15, 2015
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