Income Statement Coverto Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2018 Sales $424 000 Variable costs Mandring 5254.400 saline 21,200 Administrative 63,600 (339,200 Contribution margin $64.600 costs Manufacturing expen $5,000 Selling expense 4,000 Administrative expense 12,200 (21,200 Operating come $63.600 Income Statement Biblio File Bible Company Contribution Margin Income Statement For the Year Ended December 31, 2018 Sales $424.000 Variable costs Mandring $169,600 Seling 16,960 Administrative 67,840 (254,400) Centrum margin $1.600 Fixed : Manuladuring $88,000 Selling expense 8.000 Administrative pense 10,000 (106,000) Operating come $63.600 Sales Mix Bible Files company is making plans for is next fiscal year, and decides to all types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings Type of Sale Price Variable com Bookshell per Unit per Unit Basic $5.00 $1.25 Dulu 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break. If we think of the Basic and Dale products as components of one overall enterprise product called "Combed," the unit contribution margin for the combined product would be $2.31. Fixed costs for the upcoming year are estimated at $341,880. Recal that the total of all the sales mix percent must be 100%. Datine the amounts to complete the following table. Type of Percent or Break Even Break Even Sale Books Sal Mix Sales in Units in Dollars Basic Del Fendt Review the definition of break-even point. Bacall that the combined until contribution margin is given by (Basic until contribution margin) x (Basic purcent of sales mix]] + [Deluxe unit contribution margin) (Deluxe percent of sales mix)]. Since these picants must add up to 100%, we have the following: (Basic percent of sales mix) ( Dont of sales mix) - 100, so that (Delus part of sales mix) = 1004 - Basic percent of sales mix) Target Profit Refer again to the income statements for ever-to-Cover Company and Bible Files company on their respective Income Statement. Note that both companies have the same sales and net income. A qui (1) - (3) that follow, assuming that al data for the coming year is the same as the current year, except for the amount of sal 1. Cor-to-Cove Company wants to increase is profile by 520,000 in the coming year, what must their amount of sal be? 2. If Bali File company wants to increase is profit by 530,000 in the coming year, what must their amount of sal be? 3. What would explain the difference between your answers for (1) and (2) a. Bible Files Company has a higher contribution marginal and some of each sales de la vilable to cover fixed costs and provide operating income b. Cover-to-Cover Company's contribution margin ratio is low, meaning that it's more efficient in its operations. c. The companies have goals that are not in the devant range d. The answers are no different; ach company has the same required sales amount for the coming year to achieve the desired largel profil