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 units Deluxe models 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 Revenue
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 units Deluxe models 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 Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Steinberg Company
![Operating income
$6,748,800
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
units
Deluxe models
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
Revenue](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facb9658b-7b91-43ea-9f1d-832c92b61562%2Fa19afd67-cee3-4203-a481-37d472cb0e85%2Ftyonauj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Operating income
$6,748,800
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
units
Deluxe models
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
Revenue
![CVP Analysis of Multiple Products
Steinberg 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, Steinberg 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
$14,400,000
$12,240,000
$26,640,000
Less: Variable costs
8,640,000
7,344,000
15,984,000
Contribution margin
$5,760,000
$4,896,000
$10,656,000
Less: Direct fixed costs
1,200,000
960,000
2,160,000
Segment margin
$4,560,000
$3,936,000
$8,496,000
Less: Common fixed costs
1,747,200
Operating income
$6,748,800
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
units
Deluxe models
units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facb9658b-7b91-43ea-9f1d-832c92b61562%2Fa19afd67-cee3-4203-a481-37d472cb0e85%2Fldynry_processed.jpeg&w=3840&q=75)
Transcribed Image Text:CVP Analysis of Multiple Products
Steinberg 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, Steinberg 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
$14,400,000
$12,240,000
$26,640,000
Less: Variable costs
8,640,000
7,344,000
15,984,000
Contribution margin
$5,760,000
$4,896,000
$10,656,000
Less: Direct fixed costs
1,200,000
960,000
2,160,000
Segment margin
$4,560,000
$3,936,000
$8,496,000
Less: Common fixed costs
1,747,200
Operating income
$6,748,800
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
units
Deluxe models
units
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