Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 60,000 table fans in the coming year Product price and cost information includes: Celling Fan Table Fan $50 $17 Price Unit variable cost Direct fixed cost $11 $24,200 $9 $40,000 Common fixed selling and administrative expenses total $70,000. Required: 1. 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 2. Using the sales mix from Requirement i form a pack 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 celling fans Break-even table fans Why Wor 1. Sal mix the ratio of one product to another 2. Seu Cornerstone 16,5 3. Prepare a contribution-margin-based income statement for Vandenberg. Ind. Based on the unit sales calculated in Requirement 2. If an amount is zero, enter" 3. 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 "o". Enter any negative product margin and losses with a minus sign. Do not round intermediate calculations. Round your final answers to nearest doilar. Vandenberg, Inc. Contribution-Margin-Income Statement For the Coming Year Ceiling Fans Table Fans Total Sales Less: Variable expenses Contribution margin Less Direct fixed expenses Product margin Less Common fixed expenses Operating loss DODO 4. What If Vandenberg, Inc., wanted to earn operating income equal to $12,400? Calculate the number of ceiling fans and table fans that must be sold to earn the level of operating income. (Hint: Remember to form a package of celing fans and table fons based on the sales mix and to first calculate the number of packages to earn an operating income of $12,400.) Round your intermediate calculations and final answers to nearest number Break-even ceiling fans Break-even table fans
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started