(Solution) - Zapo 1 2 3 is a top selling electronic spreadsheet product Zapo is -(2025 Original AI-Free Solution)

Paper Details

Zapo 1-2-3 is a top-selling electronic spreadsheet product. Zapo is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Zapo 1 -2-3, 4. 0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs:

The fixed costs of Zapo 1-2-3 5.0 are $14,000,000. The planned sales mix in units is 60% new customers and 40% upgrade customers.
1. What is the Zapo 1-2-3 5.0 breakeven point in units, assuming that the planned 60%/40% sales mix is attained?
2. If the sales mix is attained, what is the operating income when 200,000 units are sold?