Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 2 0 , 0 0 0 ceiling
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell ceiling fans and table fans in the coming year. Product price and cost information includes:
Ceiling Fan Table Fan
Price $ $
Unit variable cost $ $
Direct fixed cost $ $
Common fixed selling and administrative expenses total $
Required:
Question Content Area
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
Using the sales mix from Requirement form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at breakeven? Round your intermediate calculations and final answers to the nearest whole number.
Breakeven ceiling fans:
Breakeven table fans:
Prepare a contributionmarginbased income statement for Vandenberg, Inc., based on the unit sales calculated in Requirement If an amount is zero, enter 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.
ContributionMarginIncome Statement
For the Coming Year
Sales: Ceiling Fans Table Fans & Total
Variable expenses: Ceiling Fans Table Fans & Total
Contribution margin: Ceiling Fans Table Fans & Total
Less: Direct fixed expenses: Ceiling Fans Table Fans & Total
Product margin: Ceiling Fans Table Fans & Total
Less: Common fixed expenses
Operating loss:
What if Vandenberg, Inc., wanted to earn operating income equal to $ 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 $ Round your intermediate calculations and final answers to nearest number.
Breakeven ceiling fans:
Breakeven 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