Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income Regular Model $12,000,000 7,200,000 $4,800,000 1,200,000 $3,600,000 Deluxe Model units $10,880,000 6,528,000 $4,352,000 960,000 $3,392,000 units Total 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. $22,880,000 13,728,000 $9,152,000 2,160,000 $6,992,000 1,729,600 $5,262,400 Regular models Deluxe models 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 Revenue
Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income Regular Model $12,000,000 7,200,000 $4,800,000 1,200,000 $3,600,000 Deluxe Model units $10,880,000 6,528,000 $4,352,000 960,000 $3,392,000 units Total 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. $22,880,000 13,728,000 $9,152,000 2,160,000 $6,992,000 1,729,600 $5,262,400 Regular models Deluxe models 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 Revenue
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...
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