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 $20,000$ ceiling fans and $80,000$ table fans in the coming year. Product price and cost information includes:

Common fixed selling and administrative expenses total $$76,000.$

Required:

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 $=|,x$ : $x$

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? Round your intermediate

calculations and final answers to the nearest whole number.

Break$-$even ceiling fans

Break$-$even table fans

Prepare a contribution$-$margin$-$based income statement for Vandenberg, Inc., based on the unit sales calculated in Requirement $2.$ If an amount is zero, enter $"0".$

Enter any negative product margin and losses with a minus sign. Do not round intermediate calculations. Round your final answers to nearest dollar.

Vandenberg, Inc.

Contribution$-$Margin$-$Income Statement

For the Coming Year

What if Vandenberg, Inc., wanted to earn operating income equal to $$13,200?$ Calculate the number of ceiling fans and table fans that must be sold to earn this level

of operating income. $($Hint: Remember to form a package of ceiling fans and table fans based on the sales mix and to first calculate the number of packages to earn an

operating income of $$13,200.)$ Round your intermediate calculations and final answers to nearest number.

Break$-$even ceiling fans

Break$-$even table fans