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 100,000 regular models and 20,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Sales Less: Variable costs Contribution margin, Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income $16,000,000 9,600,000 $6,400,000 1,200,000 $5,200,000 Regular models Deluxe models units $13,600,000 8,160,000 $5,440,000 960,000 units $4,480,000 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. Total $29,600,000 17,760,000 $11,840,000 2,160,000 $9,680,000 1,510,400 $8,169,600 2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the comessuto henal son. Bound the contribution maenin estin to four dacim stolsene. Hen the sounded uslus in the
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 100,000 regular models and 20,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Sales Less: Variable costs Contribution margin, Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income $16,000,000 9,600,000 $6,400,000 1,200,000 $5,200,000 Regular models Deluxe models units $13,600,000 8,160,000 $5,440,000 960,000 units $4,480,000 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. Total $29,600,000 17,760,000 $11,840,000 2,160,000 $9,680,000 1,510,400 $8,169,600 2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the comessuto henal son. Bound the contribution maenin estin to four dacim stolsene. Hen the sounded uslus in the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 100,000 regular
models and 20,000 deluxe models. A segmented income statement for the two products is as follows:
Regular Model
Sales
Less: Variable costs
Contribution margin
Less: Direct fixed costs
Segment margin
Less: Common fixed costs
Operating income
$16,000,000
9,600,000
$6,400,000
1,200,000
$5,200,000
Regular models
Deluxe models
units
units
Deluxe Model
$13,600,000
Check My Work 5 more Check My Work uses remaining
8,160,000
$5,440,000
960,000
$4,480,000
Total
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..
$29,600,000
17,760,000
$11,840,000
2,160,000
$9,680,000
1,510,400
$8,169,600
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the
in henale un Dound the contribution mazain estin ta faux dacimal abszor. Hen the sounded uslua in tha
Previous
▸
Transcribed Image Text:Less: Common fixed costs
Operating income
Regular models
Deluxe models
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.
units
Contribution margin ratio :
4,4
units
Revenue
$8,169,600
23
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..
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