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ments. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. standard units are sold. ning the sales mix. For every 1 deluxe unit(s) sold,

ments. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. standard units are sold. ning the sales mix. For every 1 deluxe unit(s) sold,

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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The Schmidt Company retalls two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the icon to view the budgeted income statement.) Read the requirements. Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. Begin by determining the sales mix. For every 1 deluxe unit(s) sold, standard units are sold. 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 calculate the breakeven point. deluxe units. The breakeven point is standard units and Requirement 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. (a) If only standard carriers are sold, the breakeven point is Breakeven point in bundles units.
Transcribed Image Text:The Schmidt Company retalls two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the icon to view the budgeted income statement.) Read the requirements. Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. Begin by determining the sales mix. For every 1 deluxe unit(s) sold, standard units are sold. 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 calculate the breakeven point. deluxe units. The breakeven point is standard units and Requirement 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. (a) If only standard carriers are sold, the breakeven point is Breakeven point in bundles units.
K Data table Units sold Revenues at $25 and $45 per unit Variable costs at $15 and $25 per unit Contribution margins at $10 and $20 per unit $ Fixed costs Operating income Standard Carrier Deluxe Carrier 200,000 50,000 Print 5,000,000 $ 3,000,000 2,000,000 $ Done Total $ - X 250,000 2,250,000 $ 7,250,000 1,250,000 4,250,000 1,000,000 3,000,000 2,475,000 525,000 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 250,000 units are sold but only 25,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem? ateme ounts e solc
Transcribed Image Text:K Data table Units sold Revenues at $25 and $45 per unit Variable costs at $15 and $25 per unit Contribution margins at $10 and $20 per unit $ Fixed costs Operating income Standard Carrier Deluxe Carrier 200,000 50,000 Print 5,000,000 $ 3,000,000 2,000,000 $ Done Total $ - X 250,000 2,250,000 $ 7,250,000 1,250,000 4,250,000 1,000,000 3,000,000 2,475,000 525,000 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 250,000 units are sold but only 25,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem? ateme ounts e solc
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