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More-Power Company has projected sales of 75,000 regular sanders and 30,000 min-sanders for next year. The projected income statement is as follows: Mini- Regular Sander
More-Power Company has projected sales of 75,000 regular sanders and 30,000 min-sanders for next year. The projected income statement is as follows: Mini- Regular Sander Total Sander Sales $3,000,000 $1,800,000 $4,800,000 Less: Variable expenses 1,800,000 900,000 2,700,000 Contribution margin $1,200,000 $900,000 $2,100,000 Less: Direct fixed expenses 250,000 450,000 700,000 Product margin $950,000 $450,000 $ $1,400,000 Less: Common fixed 600,000 expenses Operating income $800,000 Required: 1. For each of the following possible sales mixes, calculate operating income: Regular Sander Mini-Sander a. 75,000 37,500 b. 60,000 60,000 C. 30,000 90,000 d. 30,000 60,000 Operating Income a b. S C. d. 2. Calculate the break-even units for each product for each of the preceding sales mixes. Round the number of break-even packages to two decimal places and use this figure for intermediate calculations). Round the number of break-even regular and mini-sanders to the nearest whole unit. a b C d Break-even packages - Break-even regular sanders Break-even mini-sanders Check My Work 5 more Check My Work uses remaining Previous Next
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