The Alves Company retails two products: a standard and a deluxe version of a luggage carrier....
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The Alves Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the icon to view the budgeted income statement.) Read the requirements. Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. Begin by determining the sales mix. For every 1 deluxe unit(s) sold, 3 standard units are sold. 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. Fixed costs Contribution margin per bundle = Breakeven point in bundles 7 1050000 150000 Requirements i Data Table - 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 240,000 units are sold but only 40,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem? Units sold Revenues at $30 and $38 per unit Standard Carrier Deluxe Carrier 180,000 Total 60,000 240,000 Variable costs at $24 and $28 per unit Contribution margins at $6 and $10 per unit Fixed costs 5,400,000 $ 4,320,000 1,080,000 $ 2,280,000 $ 7,680,000 1,680,000 6,000,000 600,000 1,680,000 1,050,000 $ 630,000 Print Done Operating income X The Alves Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the icon to view the budgeted income statement.) Read the requirements. Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. Begin by determining the sales mix. For every 1 deluxe unit(s) sold, 3 standard units are sold. 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. Fixed costs Contribution margin per bundle = Breakeven point in bundles 7 1050000 150000 Requirements i Data Table - 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 240,000 units are sold but only 40,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem? Units sold Revenues at $30 and $38 per unit Standard Carrier Deluxe Carrier 180,000 Total 60,000 240,000 Variable costs at $24 and $28 per unit Contribution margins at $6 and $10 per unit Fixed costs 5,400,000 $ 4,320,000 1,080,000 $ 2,280,000 $ 7,680,000 1,680,000 6,000,000 600,000 1,680,000 1,050,000 $ 630,000 Print Done Operating income X
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