Compute the number of miniphones and netphones that must be sold to breakeven.


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Compute the number of miniphones and netphones that must be sold to breakeven. 1 answer below » CVP ANALYSIS WITH MULTIPLE PRODUCTS Reingold Company produces wireless phones. One model is the miniphone—a basic model that is very small and slim. The miniphone fits into a shirt pocket. Another model, the netphone, has a larger display and is Internet-ready. For the coming year, Reingold expects to sell 200,000 miniphones and 600,000 netphones. A segmented income statement for the two products is as follows: View complete question » Miniphone Netphone Total Sales $5,000,000 $36,000,000 $41,000,000 Less: Variable costs 2,400,000 30,000,000 32,400,0 CVP ANALYSIS WITH MULTIPLE PRODUCTS Reingold Company produces wireless phones. One model is the miniphone—a basic model that is very small and slim. The miniphone fits into a shirt pocket. Another model, the netphone, has a larger display and is Internet-ready. For the coming year, Reingold expects to sell 200,000 miniphones and 600,000 netphones. A segmented income statement for the two products is as follows: Miniphone Netphone Total Sales $5,000,000 $36,000,000 $41,000,000 Less: Variable costs 2,400,000 30,000,000 32,400,000 Contribution margin $2,600,000 $ 6,000,000 $ 8,600,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $1,400,000 $ 5,040,000 $ 6,440,000 Less: Common fixed costs 1,280,000 Operating income $ 5,160,000 Required: 1. Compute the number of miniphones and netphones that must be sold to breakeven. 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. View less » Jul 24 2014 07:51 AM

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