Record 1-2-3 is a top-selling electronic spreadsheet product. Record is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Record 1-2-3, 4.0 or earlierversions). Although the same 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 Record 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers.Read the requirements.Requirement 1. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained?The breakeven point isunits for new customers andunits for upgrade customers.Requirements1.2.3.What is the Record 1-2-3 5.0 breakeven point in units, assuming that theplanned 60% / 40% sales mix is attained?If the sales mix is attained, what is the operating income when 170,000 totalunits are sold?Show how the breakeven point in units changes with the following customermixes:a. New 50% and upgrade 50%b. New 80% and upgrade 20%c. Comment on the results.PrintDoneXData TableSelling priceVariable costsManufacturingMarketingContribution margin$New Customers Upgrade Customers$ 225$Print2060S80145SDone205$1202595 The Swift Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup ofcoffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable costs for each customer is $3.50. The income taxrate is 30%. Target net income is $117,600.Requirements1. Compute the revenues needed to earn the target net income.2. How many customers are needed to break even? To earn net income of $117,600?3. Compute net income if the number of customers is 155,000.

Breakeven point in units is calculated by keeping the fixed cost at numerator and contribution…

Answered: Requirement 1. What is the Record 1-2-3…

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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Product X; total sales are 100 units, unit sales price is 1000 TL, unit variable costs are 800 TL. (Total fixed expenses 120.000TL)What is the 'breakeven point' of X according to uniform production? 9083776068
Assume à sales price per unit of $10, variable cost per unit $6, and total fixed costs of $198240. What is the breakeven point in units? O 19824 units 33040 units O 12390 units 49560 units
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Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D=Demand in units for one year, P=Ordering cost per purchase order, C=Carrying cost of one unit in stock, Q=Any order quantity.) ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC Part 2 (Round your answer to the nearest whole number.) The EOQ is 560 jerseys. Part 3 Requirement 2. Calculate the number of orders that will be placed each year. Determine the formula used to calculate the number of orders that will be placed each year, then calculate the orders per year. (Round your answer up to the nearest whole number.) ÷ = Number of orders
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Requirement 1. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? The breakeven point is units for new customers and units for upgrade customers.