Cornerstone Exercise 16.5 (Algorithmic) Multiple-Product Break-Even and Target Profit

Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 30,000 ceiling fans and 90,000 table fans in the coming year. Product price and cost information includes:

	Ceiling Fan				Table Fan
Price		$50				$11
Unit variable cost		$11				$4
Direct fixed cost		$20,800				$46,000

Common fixed selling and administrative expenses total $80,000.

Required:

1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)? Sales mix of ceiling fans to table fans = :

2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Do not round intermediate calculations. If required, round your final answers to the nearest whole number.

Break-even ceiling fans
Break-even table fans