CVP Analysis of Multiple Products Steinberg Company produces commercial printers. One is the regular model,...
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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 100,000 regular models and 20,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model $16,000,000 9,600,000 $6,400,000 1,200,000 $5,200,000 Deluxe Model $13,400,000 8,040,000 $5,360,000 960,000 $4,400,000 Total $29,400,000 17,640,000 $11,760,000 2,160,000 $9,600,000 1,485,600 $8,114,400 Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income 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 units units
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