Sandman Enterprises produces and sells two products: a bedside lamp decorated with comic book characters, and a baby mobile that hangs above a crib and can play lullabies.

Sandman plans to sell 30,000 bedside lamps and 20,000 lullaby mobiles in the coming year. Product price and cost information includes:

Required:
1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?
2. Using the sales mix from Requirement 1, form a package of bedside lamps and lullaby mobiles. How many bedside lamps and lullaby mobiles are sold at break-even?
3. Prepare a contribution-margin-based income statement for Sandman Enterprises based on the unit sales calculated in Requirement 2.
4. What if Sandman Enterprises wanted to earn operating income equal to $14,400?
Calculate the number of bedside lamps and lullaby mobiles that must be sold to earn this level of operating income.LO1

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Price Unit variable cost Bedside Lamp Lullaby Mobile $24 $40 $12 $10 $23,600 Direct fixed cost $45,000 Common fixed selling and administrative expense totals $85,000.