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:     Regular Model   Deluxe Model   Total Sales   $13,500,000     $12,060,000     $25,560,000   Less: Variable costs   8,100,000     7,236,000     15,336,000      Contribution margin   $5,400,000     $4,824,000     $10,224,000   Less: Direct fixed costs   1,200,000     960,000     2,160,000      Segment margin   $4,200,000     $3,864,000     $8,064,000   Less: Common fixed costs           1,361,600      Operating income           $6,702,400   Required: 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. Regular models fill in the blank 1 units Deluxe models fill in the blank 2 units 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. Contribution margin ratio fill in the blank 3 Revenue $fill in the blank 4

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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:

    Regular Model   Deluxe Model   Total
Sales   $13,500,000     $12,060,000     $25,560,000  
Less: Variable costs   8,100,000     7,236,000     15,336,000  
   Contribution margin   $5,400,000     $4,824,000     $10,224,000  
Less: Direct fixed costs   1,200,000     960,000     2,160,000  
   Segment margin   $4,200,000     $3,864,000     $8,064,000  
Less: Common fixed costs           1,361,600  
   Operating income           $6,702,400  

Required:

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.

Regular models fill in the blank 1 units
Deluxe models fill in the blank 2 units

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.

Contribution margin ratio fill in the blank 3
Revenue $fill in the blank 4
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