1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex Ar [27]
3 years ago
5

Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black an

d white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo 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
$13,500,000 $12,240,000 $25,740,000
Less: Variable costs 8,100,000 7,344,000 15,444,000
Contribution margin $5,400,000 $4,896,000 $10,296,000
Less: Direct fixed costs 1,200,000 960,000 2,160,000
Segment margin $4,200,000 $3,936,000 $8,136,000
Less:Common fixed costs 1,500,800
Operating income $6,635,200
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 whole percentage.) Round the amount of revenue to the nearest dollar.
Business
1 answer:
Nataly [62]3 years ago
5 0

1. The break-even points in sales units are computed as follows:

Break-even point (in units) = Direct fixed cost/contribution margin per unit

Regular model = 20,000 units ($1,200,000/$60)

Deluxe model = 3,529 units ($960,000/$272)

2. The Alo Company's Sales revenue to break-even, company-wide, is computed as follows:

<u>Sales Revenue at break-even point:</u>

= Fixed costs/Contribution margin ratio

= $3,660,800/40%

= $9,152,000

Data and Calculations:

                                         Regular Model   Deluxe Model           Total

Expected sales quantity             90,000               18,000             108,000

Sales                                    $13,500,000     $12,240,000     $25,740,000

Less: Variable costs               8,100,000         7,344,000        15,444,000

Contribution margin           $5,400,000       $4,896,000     $10,296,000

Less: Direct fixed costs         1,200,000            960,000         2,160,000

Segment margin                $4,200,000       $3,936,000       $8,136,000

Less:Common fixed costs                                                         1,500,800

Operating income                                                                  $6,635,200

Selling price per unit                  $150                   $680 ($12,240,000/18,000)

Variable costs per unit                $90                   $408 ($7,344,000/18,000)

Contribution margin                    $60                   $272 ($680 - $408)

Contribution margin ratio for the company = 40% ($10,296,000/$25,740,000 x 100)

Company total fixed costs = $3,660,800 ($2,160,000 + $1,500,800)

Learn more: brainly.com/question/17173792

You might be interested in
What does total number of allowances you are claiming mean.
Svetach [21]

Answer:

mean the amount you are getting

Explanation:

Hope this help

3 0
1 year ago
A war begins between two countries, causing a need for thousands of men workers to produce uniforms and Nezos
nydimaria [60]

<u>Answer:</u> Option C World event

<u>Explanation:</u>

The labor market which is affected by a man made event that is the world event is known as war. Here in the above case the labor market demand increases when there is war situation between two countries. As the demand for uniforms and weapons increases. This is because the countries require additional resources to prove their strength.

Excess demand for labor exist when there is war. This changes the unemployment situation and any labor with or without skills are hired to meet the demand in the labor market.

7 0
3 years ago
The emergency food assistance program distributes ___________ for home and institutional use. funds to buy food meals grocery st
GalinKa [24]
Food. Is there anything else to this?
4 0
3 years ago
jameson machinery inc. wants to release their newest equipment in the south american market before other companies in order to e
Natasha_Volkova [10]

Based on the actions of Jameson Machinery Inc, we can infer that they want to benefit from<u> First Mover Advantage. </u>

<u />

First Mover Advantage:

  • Involves being the first company or brand to enter a certain industry
  • Gives the brand a competitive advantage and customer loyalty over other competitors
  • Allows company to perfect services offered

In trying to get to South America first and having their brand established, Jameson hopes to benefit from first mover advantage which would see them have a competitive advantage over competitors that come later.

In conclusion, Jameson hopes to benefit from First-Mover Advantage.

<em />

<em>Find out more at brainly.com/question/14663095. </em>

3 0
2 years ago
Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eati
Alexeev081 [22]

Answer:

Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eating one hot dog, and the two goods fill the same need in Harry's life. The price of hot dogs has been extremely volatile for the past several years, and this year is no exception Hot dog prices decreased tremendously this month Assuming hot dogs and hamburgers are substitutes for Harry, what is the effect on Harry's demand for hamburgers due to the decrease in the price of hot dogs?

There will be a movement down along his demand curve

Explanation:

Reason behind the decrease in demand curve for hamburger would be as a result of decrease in the price of hot dog which would increase the demand since they could be substituted for each other because of their benefits; hence, the demand curve for hamburger would be decreased or mov e down

0 0
2 years ago
Other questions:
  • Fourteen years ago william put money in his account at first national bank. william decides to cash in his account and is told t
    13·1 answer
  • Amy notices that her credit card company has charged too high an interest rate for delayed payment this month. which law protect
    8·2 answers
  • On January 1, Year 7, Colorado Corp. purchased a machine having an estimated useful life of 8 years and no salvage value. The ma
    7·1 answer
  • Suppose the current price of gasoline at the pump is $4 per gallon and that 1 million gallons are sold per day. A politician pro
    10·1 answer
  • A risk-free bond will pay you $1,000 in 2 years and nothing in between. The annual discount rate is i=27.5% compounded annually.
    7·1 answer
  • What is the step by step process of making money in the united states?
    14·1 answer
  • 5. In war time conditions, cigarettes have been used as money. What disadvantage do cigarettes have for trading compared with no
    15·1 answer
  • Only ______ segregation produces viable gametes and progeny, which also occurs in about half of meiosis and accounts for semi-st
    6·1 answer
  • A liquidated debt is an obligation the existence or amount of which is in dispute. Group of answer choices True False
    6·1 answer
  • Nellie recently sold her old laptop directly to a student from different country using an e-commerce website. the website she us
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!