Question
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
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: Ceiling Fan Table Fan Price $62 $14 Unit variable cost $8 $4 Direct fixed cost $22,400 $49,000 Common fixed selling and administrative expenses total $70,000. Required: Question Content Area 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 = fill in the blank 035567f4dff5041_1 : fill in the blank 035567f4dff5041_2 2. 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 fill in the blank 035567f4dff5041_3 1,504 Break-even table fans fill in the blank 035567f4dff5041_4 Question Content Area 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 "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 Ceiling Fans Table Fans Total Sales $Sales 93,624 $Sales 84,238 $Sales 177,502 Less: Variable expenses Less: Variable expenses 12,034 Less: Variable expenses 24,068 Less: Variable expenses 36,102 Contribution margin $Contribution margin 81,230 $Contribution margin 60,170 $Contribution margin 141,400 Less: Direct fixed expenses Less: Direct fixed expenses 22,400 Less: Direct fixed expenses 49,000 Less: Direct fixed expenses 71,400 Product margin $Product margin 58,830 $Product margin 11,170 $Product margin Less: Common fixed expenses Less: Common fixed expenses 70,000 Operating loss $Operating loss 0 Question Content Area 4. What if Vandenberg, Inc., wanted to earn operating income equal to $13,600? 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 $13,600.) Round your intermediate calculations and final answers to nearest number. Break-even ceiling fans fill in the blank 170fbefa7fabfe6_1 1,649 Break-even table fans
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