Question

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, 4 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 S 1,300,000 0 Data Table Requirements Standard Carrier Deluxe Carrier 176.000 44,000 Total 220,000 $ 3,520,000 $ Units sold Revenues at $20 and $37 per unit $ Variable costs at $15 and $17 per unit $ Contribution margins at $5 and $20 per unit 1.628.000 $ 5,148,000 748.000 3,388,000 2.640.000 $ 380.000 $ B60,000 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in unils (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 220,000 units are sold but only 22,000 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? 1,760,000 1,300.000 Fixed costs $ 460,000 Operating income Print Done Print Done Enter any number in the edit fields and then click Check Answer. ? 7 parts Clear All Check Answer remaining

Answer 1

Answer is 162500 bundles.

working Notes! Contaibution margin Perunit Delune Standard Carrier Cermies 20 37 Revenue per unit less: variable cost peonnut per unit IS 17 lull 5 20 contribuhon margh. Sales mix xloo GO pasti tulos podatt 80% 201. salle mul of Standard carries= Sales unit Chat of Sale of Standard canner per bundle Xlop Total No of unit at sale in the budle. Sales most of belunce carrier - uales unit Deluxe cerreries per bundle Total No. of unit of sale in the bundle.