CP 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 80,000 regular models and 16,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Total Sales $12,000,000 $10,880,000 $22,880.000 Less: Variable costs 7.200.000 6,528,000 13,728,000 Contribution margin $4,800,000 $4,352,000 $9,152,000 Less: Direct fixed costs 1,200.000 960,000 2,160,000 Segment margin $3,600,000 $3,392,000 $6,992,000 Less: Common fixed costs 1,386,400 Operating income $5,605,600 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 X units Deluxe models X 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 Revenue
CP 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 80,000 regular models and 16,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model Total Sales $12,000,000 $10,880,000 $22,880.000 Less: Variable costs 7.200.000 6,528,000 13,728,000 Contribution margin $4,800,000 $4,352,000 $9,152,000 Less: Direct fixed costs 1,200.000 960,000 2,160,000 Segment margin $3,600,000 $3,392,000 $6,992,000 Less: Common fixed costs 1,386,400 Operating income $5,605,600 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 X units Deluxe models X 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 Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CP 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 80,000 regular models and 16,000 deluxe models. A segmented income statement for the two products is as follows:
Regular Model
Deluxe Model
Total
Sales
$12,000,000
$10,880,000
$22,880.000
Less: Variable costs
7.200.000
6,528,000
13,728,000
Contribution margin
$4,800,000
$4,352,000
$9,152,000
Less: Direct fixed costs
1,200.000
960,000
2,160,000
Segment margin
$3,600,000
$3,392,000
$6,992,000
Less: Common fixed costs
1,386,400
Operating income
$5,605,600
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
X units
Deluxe models
X 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
Revenue
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