Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, s a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products s as follows: Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income Required: Regular models Deluxe models Regular Model Deluxe Model $13,500,000 8,100,000 $5,400,000 1,200,000 $4,200,000 Contribution margin ratio Revenue 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit. units $12,060,000 units 7,236,000 $4,824,000 960,000 $3,864,000 Total $25,560,000 15,336,000 $10,224,000 2,160,000 $8,064,000 1,475,200 $6,588,800 2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than a whole percentage.) Round the amount of revenue to the nearest dollar.
Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, s a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products s as follows: Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income Required: Regular models Deluxe models Regular Model Deluxe Model $13,500,000 8,100,000 $5,400,000 1,200,000 $4,200,000 Contribution margin ratio Revenue 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit. units $12,060,000 units 7,236,000 $4,824,000 960,000 $3,864,000 Total $25,560,000 15,336,000 $10,224,000 2,160,000 $8,064,000 1,475,200 $6,588,800 2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than a whole percentage.) Round the amount of revenue to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:CVP Analysis of Multiple Products
Alo Company produces commercial printers. One is the regular model, a basic model
that is designed to copy and print in black and white. Another model, the deluxe model,
is a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular
models and 18,000 deluxe models. A segmented income statement for the two products
is as follows:
Sales
Less: Variable costs
Contribution margin
Less: Direct fixed costs
Segment margin
Less: Common fixed costs
Operating income
Required:
Regular models
Deluxe models
Regular Model Deluxe Model
$13,500,000
8,100,000
$5,400,000
1,200,000
$4,200,000
Contribution margin ratio
Revenue
units
$12,060,000
7,236,000
$4,824,000
960,000
$3,864,000
1. Compute the number of regular models and deluxe models that must be sold to break
even. Round your answers to the nearest whole unit.
units
Total
$25,560,000
15,336,000
$10,224,000
2,160,000
$8,064,000
1,475,200
$6,588,800
2. Using information only from the total column of the income statement, compute the
sales revenue that must be generated for the company to break even. Round the
contribution margin ratio to four decimal places. Use the rounded value in the
subsequent computation. (Express as a decimal-based amount rather than a
whole percentage.) Round the amount of revenue to the nearest dollar.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education