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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 $90,000$ regular models and $18,000$ deluxe models. A segmented income statement for the two products is as follows:

Regular Model Deluxe Model Total

Sales $$13,500,000$ $$12,060,000$ $$25,560,000$

Less: Variable costs $8,100,0007,236,00015,336,000$

Contribution margin $$5,400,000$ $$4,824,000$ $$10,224,000$

Less: Direct fixed costs $1,200,000960,0002,160,000$

Segment margin $$4,200,000$ $$3,864,000$ $$8,064,000$

Less: Common fixed costs $1,588,800$

Operating income $$6,475,200$

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 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 $4$

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