Requirement 1. What is the Zapo 1-2-3 version 5.0 breakeven point in units, assuming that the planned 60/ 40 sales mix is attained? The breakeven point is 55862 units for new customers and 56842 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 170,000 units are sold? The operating income is if the sales mix is attained and 170,000 units are sold. Requirement 3. Show how the breakeven point in units changes with the following customer mixes: a. New 50% and Upgrade 50% and b. New 80% and Upgrade 20%. a. Begin by determining the sales mix for scenario "a." The breakeven point is bundles. This translates to a breakeven point of units for new customers and units for upgrade customers. b. Now, determine the sales mix for scenario "b." The breakeven point is bundles. This translates to a breakeven point of units for new customers and units for upgrade customers. c. Comment on the results. As Zapo increases its percentage of new customers, which have a V contribution margin per unit than upgrade customers, the number of bundles required to break even

Requirement 1. What is the Zapo 1-2-3 version 5.0 breakeven point in units, assuming that the planned 60/ 40 sales mix is attained? The breakeven point is 55862 units for new customers and 56842 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 170,000 units are sold? The operating income is if the sales mix is attained and 170,000 units are sold. Requirement 3. Show how the breakeven point in units changes with the following customer mixes: a. New 50% and Upgrade 50% and b. New 80% and Upgrade 20%. a. Begin by determining the sales mix for scenario "a." The breakeven point is bundles. This translates to a breakeven point of units for new customers and units for upgrade customers. b. Now, determine the sales mix for scenario "b." The breakeven point is bundles. This translates to a breakeven point of units for new customers and units for upgrade customers. c. Comment on the results. As Zapo increases its percentage of new customers, which have a V contribution margin per unit than upgrade customers, the number of bundles required to break even

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 12E: The following series of statements or phrases are associated with product life-cycle viewpoints....

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