The following projected income statement for More-Power Company is repeated for your convenience. Recall that the projection is based on sales of 75,000 regular sanders and 30,000 mini-sanders.

Required:
1.Set up the above income statement on a spreadsheet (e.g., Quattro Pro^" or Excel'”).
Then, substitute the following sales mixes and calculate operating income. Be sure to print the results for each sales mix (a through d).

2.Calculate the break-even units for each product for each of the preceding sales mixes.

Transcribed Image Text:

Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common fixed expenses Operating income Regular Sander Mini-Sander Total $3,000,000 $1,800,000 $4,800,000 1,800,000 900,000 2,700,000 $1,200,000 $ 900,000 $2,100,000 250,000 450,000 700,000 $ 950,000 $ 450,000 $1,400,000 600,000 800,000