Homework Help is Here – Start Your Trial Now!
Business
Accounting
3-51 Sales mix, two products. The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: Standard Carrier Deluxe Carrier Total Units sold 187,500 62,500 250,000 Revenues at $28 and $50 per unit Variable costs at $18 and $30 per unit $5,250,000 $3,125,000 $8,375,000 3,375,000 $1,875,000 1,875,000 $1,250,000 5,250,000 3,125,000 Contribution margins at $10 and $20 per unit Fixed costs 2,250,000 $ 875,000 Operating income 0.580 mcteod 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 250,000 units are sold but only 50,000 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?

3-51 Sales mix, two products. The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: Standard Carrier Deluxe Carrier Total Units sold 187,500 62,500 250,000 Revenues at $28 and $50 per unit Variable costs at $18 and $30 per unit $5,250,000 $3,125,000 $8,375,000 3,375,000 $1,875,000 1,875,000 $1,250,000 5,250,000 3,125,000 Contribution margins at $10 and $20 per unit Fixed costs 2,250,000 $ 875,000 Operating income 0.580 mcteod 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 250,000 units are sold but only 50,000 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
3-51 Sales mix, two products. The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: Standard Carrier Deluxe Carrier Total Units sold 187,500 62,500 250,000 Revenues at $28 and $50 per unit Variable costs at $18 and $30 per unit $5,250,000 $3,125,000 $8,375,000 3,375,000 $1,875,000 1,875,000 $1,250,000 5,250,000 3,125,000 Contribution margins at $10 and $20 per unit Fixed costs 2,250,000 $ 875,000 Operating income 0.580 mcteod 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 250,000 units are sold but only 50,000 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?
Transcribed Image Text:3-51 Sales mix, two products. The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: Standard Carrier Deluxe Carrier Total Units sold 187,500 62,500 250,000 Revenues at $28 and $50 per unit Variable costs at $18 and $30 per unit $5,250,000 $3,125,000 $8,375,000 3,375,000 $1,875,000 1,875,000 $1,250,000 5,250,000 3,125,000 Contribution margins at $10 and $20 per unit Fixed costs 2,250,000 $ 875,000 Operating income 0.580 mcteod 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 250,000 units are sold but only 50,000 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?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS