Instructions Multiple-Product Break-even, Break-Even Sales Revenue Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold 24,000 vinyl mitts and 12,000 leather mitts. Information on the two products is as follows: Price Variable cost per unit Vinyl Mitts Leather Mitts $10 $16 6 10 Total fixed cost is $104,720. Suppose that in the coming year, the company plans to produce an autographed mitt. The company estimates that 6,000 autographed mitts can be sold at a price of $23 and a variable cost per unit of $12. Total fixed cost must be increased by $34,900 (making total fixed cost $139,620). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. Part 1: Sales Mix Instructions and Part 2: Break-Even 1. What is the sales mix of vinyl mitts, leather mitts, and autographed mitts? 4:2:1 2. Compute the break-even quantity of each product. (Round break-even packages to four significant digits and break-even units to the nearest whole unit.) Break-Even Vinyl Mitts Break-Even Leather Mitts units units Break-Even Autographed Mitts units Feedback Check My Work 1. See text section "Determining the Sales Mix." Part 3a: Income Statement 3a. Prepare an income statement for Andrews Sporting Goods, Inc. for the coming year. Andrews Sporting Goods Inc. Income Statement For the Coming Year Line Item Description Amount Sales Total variable cost Contribution margin Total fixed cost Operating income Feedback Check My Work 3a. Prepare contribution margin income statement. Part 3b: Contribution Margin Ratio and Part 4: Margin of Safety 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) Overall contribution margin ratio Overall break-even sales revenue 4. Compute the margin of safety for the coming year in sales dollars. $ % Feedback Check My Work 3b. Divide total contribution margin by sales. Divide total fixed costs by contribution margin ratio. 4. Compute the difference between expected sales and break-even sales.