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Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 5.0. It divides its customers into two groups: new custo physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Data 1-2-3 5.0 are $10,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements bugh the same 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 230.000 total units are sold? 3. Show how the breakeven point in units changes with the following customer mixes: Requirement 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle. 3 units are sold to new customers, and 2 units are sold to customer who bought ups Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to c a. New 50% and upgrade 50% b. New 90% and upgrade 10% c. Comment on the results. Fixed costs 10,500,000 Contribution margin per bundle = 625 Breakeven point in bundles 16,800 The breakeven point is 50,400 units for new customers and 33,600 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 230,000 units are sold? Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income New customers Upgrade customers Total Data table Print Done New Customers Upgrade Customers Selling price Variable costs $ 220 $ 130 Manufacturing S 20 S 20 Marketing 55 75 15 35 $ 145 $ 95 Contribution margin Print Done

Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 5.0. It divides its customers into two groups: new custo physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Data 1-2-3 5.0 are $10,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements bugh the same 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 230.000 total units are sold? 3. Show how the breakeven point in units changes with the following customer mixes: Requirement 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle. 3 units are sold to new customers, and 2 units are sold to customer who bought ups Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to c a. New 50% and upgrade 50% b. New 90% and upgrade 10% c. Comment on the results. Fixed costs 10,500,000 Contribution margin per bundle = 625 Breakeven point in bundles 16,800 The breakeven point is 50,400 units for new customers and 33,600 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 230,000 units are sold? Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income New customers Upgrade customers Total Data table Print Done New Customers Upgrade Customers Selling price Variable costs $ 220 $ 130 Manufacturing S 20 S 20 Marketing 55 75 15 35 $ 145 $ 95 Contribution margin Print Done

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 5.0. It divides its customers into two groups: new custo physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Data 1-2-3 5.0 are $10,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements bugh the same 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 230.000 total units are sold? 3. Show how the breakeven point in units changes with the following customer mixes: Requirement 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle. 3 units are sold to new customers, and 2 units are sold to customer who bought ups Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to c a. New 50% and upgrade 50% b. New 90% and upgrade 10% c. Comment on the results. Fixed costs 10,500,000 Contribution margin per bundle = 625 Breakeven point in bundles 16,800 The breakeven point is 50,400 units for new customers and 33,600 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 230,000 units are sold? Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income New customers Upgrade customers Total Data table Print Done New Customers Upgrade Customers Selling price Variable costs $ 220 $ 130 Manufacturing S 20 S 20 Marketing 55 75 15 35 $ 145 $ 95 Contribution margin Print Done
Transcribed Image Text:Data 1-2-3 is a top-selling electronic spreadsheet product. Data is about to release version 5.0. It divides its customers into two groups: new custo physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Data 1-2-3 5.0 are $10,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements bugh the same 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 230.000 total units are sold? 3. Show how the breakeven point in units changes with the following customer mixes: Requirement 1. What is the Data 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle. 3 units are sold to new customers, and 2 units are sold to customer who bought ups Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to c a. New 50% and upgrade 50% b. New 90% and upgrade 10% c. Comment on the results. Fixed costs 10,500,000 Contribution margin per bundle = 625 Breakeven point in bundles 16,800 The breakeven point is 50,400 units for new customers and 33,600 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 230,000 units are sold? Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income New customers Upgrade customers Total Data table Print Done New Customers Upgrade Customers Selling price Variable costs $ 220 $ 130 Manufacturing S 20 S 20 Marketing 55 75 15 35 $ 145 $ 95 Contribution margin Print Done
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