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 unitsDeluxe models fill in the blank 2 units2. 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 thecontribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than a wholepercentage.) Round the amount of revenue to the nearest dollar.Contribution margin ratiofill in the blank 3Sfill in the blank 4Revenue CVP Analysis of Multiple ProductsAlo 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 deluxemodel, 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 thetwo products is as follows:SalesLess: Variable costsContribution marginLess: Direct fixed costsSegment marginLess: Common fixed costsOperating incomeRegular Model$14,400,0008,640,000$5,760,0001,200,000$4,560,000Deluxe Model$12,240,0007,344,000$4,896,000960,000$3,936,000Total$26,640,00015,984,000$10,656,0002,160,000$8,496,0001,510,400$6,985,600

To know the break even point for a company with mutliple products , the contribution margin per unit…

lumn of the income statement, compute the sales revenue that must be generated for the com places. Use the rounded value in the subsequent computation. (Express as a decimal-based an e to the nearest dollar. k 3

lumn of the income statement, compute the sales revenue that must be generated for the com places. Use the rounded value in the subsequent computation. (Express as a decimal-based an e to the nearest dollar. k 3

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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Question

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
Sfill in the blank 4
Revenue

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
Regular Model
$14,400,000
8,640,000
$5,760,000
1,200,000
$4,560,000
Deluxe Model
$12,240,000
7,344,000
$4,896,000
960,000
$3,936,000
Total
$26,640,000
15,984,000
$10,656,000
2,160,000
$8,496,000
1,510,400
$6,985,600

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