CVP Analysis of Multiple Products Alo Company produces commercial printers. One is the regular model, a basic model that
Posted: Wed Apr 27, 2022 11:12 am
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 100,000 regular models and 20,000 deluxe
models. A segmented income statement for the two products is as
follows: Regular Model Deluxe Model Total Sales $15,000,000
$13,600,000 $28,600,000 Less: Variable costs 9,000,000 8,160,000
17,160,000 Contribution margin $6,000,000 $5,440,000 $11,440,000
Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin
$4,800,000 $4,480,000 $9,280,000 Less: Common fixed costs 1,386,400
Operating income $7,893,600 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 Revenue $fill in the
blank 4
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 100,000 regular models and 20,000 deluxe
models. A segmented income statement for the two products is as
follows: Regular Model Deluxe Model Total Sales $15,000,000
$13,600,000 $28,600,000 Less: Variable costs 9,000,000 8,160,000
17,160,000 Contribution margin $6,000,000 $5,440,000 $11,440,000
Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin
$4,800,000 $4,480,000 $9,280,000 Less: Common fixed costs 1,386,400
Operating income $7,893,600 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 Revenue $fill in the
blank 4