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Using a Computer Spreadsheet to Solve Multiple-Product Break-Even: Varying Sales Mix More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini- sanders for

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Using a Computer Spreadsheet to Solve Multiple-Product Break-Even: Varying Sales Mix More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini- 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 expenses 600,000 Operating income $800,000 Required: 1. For each of the following possible sales mixes, calculate operating income: Regular Sander Mini-Sander 75,000 37,500 60,000 60,000 30,000 90,000 30.000 60,000 Required: 1. For each of the following possible sales mixes, calculate operating income: Regular Sander Mini-Sander 75,000 37,500 60,000 60,000 30,000 90,000 30,000 60,000 Operating Income $ $ $ $ 1,025,000 1,460,000 1,880,000 980,000 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. Break-even packages 62,893.08 56,522 x 41,935 28,261 Break-even regular sanders Break-even mini-sanders 20.968 28.261 2. Calculate the break-even units for each product for each of the preceding sales mines. 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. Break-even packages 62,693.08 X 56,522 X 49,057 X 51,316 Break even regular anders 41,935 28.261 12,264 Break-even mini-anders 20,960 28,261 36,792 34,211

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