Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Steinberg expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows:

Required:
1. Compute the number of regular models and deluxe models that must be sold to break even.
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even.

Transcribed Image Text:

Regular Model $13,500,000 9,000,000 S 4,500,000 1,200,000 3,300,000 Deluxe Model Total $12,150,000 7,290,000 4,860,000 960,000 $ 3,900,000 $25,650,000 16,290,000 $ 9,360,000 2,160,000 $7,200,000 1,280,000 S 5,920,000 Sales Less: Variable costs Contribution margin Segment margin Operating income Less: Direct fixed costs Less: Common fixed costs