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:

Ceiling Fan Table Fan

Price $$56$ $$10$

Unit variable cost $$11$ $$9$

Direct fixed cost $$20,400$ $$46,000$

Common fixed selling and administrative expenses total $$86,000.$

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 $=$

$2.$ 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:

Break$-$even table fans:

$3.$ 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

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

$86,000$

Operating loss:

$4.$ What if Vandenberg, Inc., wanted to earn operating income equal to $$12,400?$ Calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income. $($Hint: Remember to form a package of ceiling fans and table fans based on the sales mix and to first calculate the number of packages to earn an operating income of $$12,400.)$ Round your intermediate calculations and final answers to nearest number.

Break$-$even ceiling fans:

Break$-$even table fans: