MultipleProduct BreakEven and Target Profit
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:
Common fixed selling and administrative expenses total $
Required:
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.
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: