Income Statement - Cover-to-Cover

Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8
Sales		$404,000
Variable costs:
Manufacturing expense	$242,400
Selling expense	20,200
Administrative expense	60,600	(323,200)
Contribution margin		$80,800
Fixed costs:
Manufacturing expense	$5,000
Selling expense	4,000
Administrative expense	11,200	(20,200)
Operating income		$60,600

Income Statement - Biblio Files

Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8
Sales		$404,000
Variable costs:
Manufacturing expense	$161,600
Selling expense	16,160
Administrative expense	64,640	(242,400)
Contribution margin		$161,600
Fixed costs:
Manufacturing expense	$83,000
Selling expense	8,000
Administrative expense	10,000	(101,000)
Operating income		$60,600

Sales Mix

Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings.

Type of Bookshelf	Sales Price per Unit	Variable Cost per Unit
Basic	$5.00	$1.75
Deluxe	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 even. If we think of the Basic and Deluxe products as components of one overall enterprise product called Combined, the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $328,020. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following table.

Type of Bookshelf

Percent of Sales Mix

Break-Even Sales in Units

Break-Even Sales in Dollars

Basic

Deluxe

Need to find the percent of sales mix, Break-Even Sales in Units, and Break-Even Sales in Dollars for both Basic and Deluxe