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Unformatted text preview: How many customers are needed to earn an after-tax net income of $105,000? Number of customers: 2. Goldman Company retails two products, a standard and a deluxe version of a luggage carrier. The budgeted income statement is as follows: Standard Carrier Deluxe Carrier Total Sales in units 150,000 units 50,000 units 200,000 units Sales $ 3,000,000 $ 1,500,000 $ 4,500,000 Variable costs 2,100,000 900,000 3,000,000 CONTRIBUTION MARGIN $ 900,000 $ 600,000 $ 1,500,000 Fixed Costs 1,200,000 OPERATING INCOME $ 300,000 Compute the breakeven point in units, assuming that the planned sales mix is maintained: Standard Carrier units: Deluxe Carrier units:...
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This note was uploaded on 04/26/2011 for the course MGMT 201 taught by Professor Thoman during the Spring '11 term at Southwestern.
- Spring '11