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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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