Question: Question 1 Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 5.0. It divides its customers into two groups: new

 Question 1 Data 1-2-3 is a top-selling electronic spreadsheet product. Datais about to release version 5.0. It divides its customers into two

Question 1 Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Data 1-2-3, 4.0 or earlier versions. The following information related to the two customers group: New Customers Upgrade Customers $275 $100 Selling price Variable costs Manufacturing Marketing Contribution margin $35 65 15 100 $175 50 $ 50 The fixed costs of Data 1-2-3, 5.0 are $20,000,000. The planned sales mix in units is 30% new customers and 70% upgrade customers Required Calculate the breakeven point(units and revenues) assuming that the planned 70%:30% sales mix Required is attained Question 2 Brooke Motors is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $23,000. Salespeople are paid a commission of $600 for each car they sell. The company pays a rent equal 20% of total revenues earned during each month. Required 1-contribution margin percentage 2- Calculate breakeven point in units 3-explain your result in requirement 2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!