Question: Please solve the table below for REQUIREMENT 2: New Customers Upgrade Customers $ 220 Selling price Variable costs S 130 s 20 s 20 15
Please solve the table below for REQUIREMENT 2:



New Customers Upgrade Customers $ 220 Selling price Variable costs S 130 s 20 s 20 15 Manufacturing S 75 35 Marketing $ 145 95 Contribution margin 1. What is the Table 1-2-3 5.0 breakeven point in units, assuming that thee 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 50% and upgrade 50% b. New 90% and upgrade 10% c. Comment on the results. Table 1-2-3 is a top-selling electronic spreadsheet product. Table is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Table 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs EEE (Click the icon to view the price and cost information.) The fixed costs of Table 1-2-3 5.0 are $10,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers Read the requirements Requirement 1, What is the Table 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, 3 units are sold to new customers, and 2 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 Fixed costs Contribution margin per bundleBreakeven point in bundles 10,500,000 625 16,800 The breakeven point is 50,400 units for new customers and 33,600 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
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