Question: 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

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: , (Click the icon to view the price and cost information.) The fixed costs of Table 1-2-3 5.0 are $12,000,000. 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 80% / 40% sales mix is attained? - X Begin by determining the sales mix. For every bundle, units are sold to new customers, and units are sold to customer who bought upgrades. Requirements 1. 2. 3. What is the Table 1-2-3 5.0 breakeven point in units, assuming that the planned 80% / 40% sales mix is attained? If the sales mix is attained, what is the operating income when 170,000 total units are sold? Show how the breakeven point in units changes with the following customer mixes: a. New 40% and upgrade 60% b. New 90% and upgrade 10% c. Comment on the results. Print Done - X Data Table New Customers Upgrade Customers Selling price S 295 S 105 Variable costs Manufacturing S S 20 20 75 95 10 30 Marketing Contribution margin S 200 S 75 () Print Done
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