What is the sales mix estimated for next year

Assignment Help Accounting Basics

Reference no: EM131920717

Problem

Multiple-Product Break-Even and Target Profit

Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 30,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes:

	Ceiling Fan		Table Fan
Price		$68		$12
Unit variable cost		$15		$10
Direct fixed cost		$23,600		$48,000

Common fixed selling and administrative expenses total $82,000.

Required:

1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?

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? Do not round intermediate calculations. If required, round your final answers to the nearest whole number.

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.

4. What if Vandenberg, Inc., wanted to earn operating income equal to $14,400? Calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income.

Reference no: EM131920717

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