Zyrcon Ltd. is a computer games manufacturer. It currently has two games on the market: Alien Predators and Vegas Pokermatch. Data regarding the two products are as follows:
The fixed costs of Zyrcon are $18,750,000, and the current sales mix is 40% Alien Predators and 60% Vegas Pokermatch.
1. Assuming no change in sales mix, costs, or revenues, what is the breakeven point in total units? How many units of Alien Predators and how many units of Vegas Pokermatch are sold at the breakeven point?
2. Assume the following sales mix: 20% Alien Predators and 80% Vegas Pokermatch. Calculate the breakeven point under this sales mix assumption.
3. For the two possible sales mixes (in requirements 1 and 2), determine operating income if total unit sales are 750,000.
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