Presencia Equipajes SA retails two products, a standard and a deluxe version of a luggage carrier. The budgeted income statement is as follows: 

Required

1. Calculate the breakeven point in units, assuming that the planned revenue mix is maintained. 

2. Calculate the breakeven point in units (a) if only standard carriers are sold, and (b) if only deluxe carriers are sold. 

3. Suppose 200,000 units are sold, but only 20,000 are deluxe. Calculate the operating profit. Calculate the breakeven point if these relationships persist in the next period. Compare your answers with the original plans and the answer in requirement 1. What is the major lesson of this problem?

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Standard carrier Deluxe carrier Total Units sold 150 000 50 000 200 000 Revenues @ €20 and €30 per unit Variable costs €1 500 000 €3 000 000 €4 500 000 3 000 000 @ €14 and €18 per unit Contribution margins @ €6 and €12 per unit Fixed costs 2 100 000 900 000 1 500 000 1 200 000 €900 000 €600 000 Operating profit €300 000