CVP Analysis of Multiple ProductsSteinberg 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 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model TotalSales $13,500,000 $12,060,000 $25,560,000 Less: Variable costs 8,100,000 7,236,000 15,336,000 Contribution margin $5,400,000 $4,824,000 $10,224,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $4,200,000 $3,864,000 $8,064,000 Less: Common fixed costs 1,475,200 Operating income $6,588,800 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?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? CVP Analysis of Multiple ProductsSteinberg 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, Steinbergexpects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows:Regular ModelDeluxe ModelTotalSales$13,500,000$12,060,000$25,560,000Less: Variable costs8.100,0007,236,00015,336,000Contribution margin$5,400,000$4,824,000$10,224,000Less: Direct fixed costs1,200,000960,0002,160,000Segment margin$4,200,000$3,864,000$8,064,000Less: Common fixed costs1,475,200Operating income$6,588,800Required: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 modelsX unitsDeluxe modelsX units2. 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 thesubsequent computation. (Express as a decimal-based amount rather than a whole percentage.) Round the amount of revenue to the nearest dollar.Contribution margin ratioRevenueX

The contribution margin refers to the difference between the sales revenue and variable costs. The…

CVP 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 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 8,100,000 7,236,000 15,336,000 Contribution margin $5,400,000 $4,824,000 $10,224,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $4,200,000 $3,864,000 $8,064,000 Less: Common fixed costs 1,475,200 Operating income $6,588,800 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 ? 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 ?

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Chapter16: Cost-volume-profit Analysis

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CVP 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 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	8,100,000	7,236,000	15,336,000
Contribution margin	$5,400,000	$4,824,000	$10,224,000
Less: Direct fixed costs	1,200,000	960,000	2,160,000
Segment margin	$4,200,000	$3,864,000	$8,064,000
Less: Common fixed costs			1,475,200
Operating income			$6,588,800

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	?
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	?

CVP 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 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
8.100,000
7,236,000
15,336,000
Contribution margin
$5,400,000
$4,824,000
$10,224,000
Less: Direct fixed costs
1,200,000
960,000
2,160,000
Segment margin
$4,200,000
$3,864,000
$8,064,000
Less: Common fixed costs
1,475,200
Operating income
$6,588,800
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 margin ratio
Revenue
X

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