3. More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini- sanders for next year. The projected income statement is as follows: Regular Sander $3,000,000 1,800,000 $1,200,000 Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common fixed expenses Operating income i. ii. iii. iv. 250,000 $ 950,000 Regular Sander 75,000 60,000 30,000 30,000 a) Set up the given income statement on a spreadsheet (e.g., Excel™). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d). Mini-Sander $1,800,000 900,000 $ 900,000 450,000 S 450,000 Mini Sander 37,500 60,000 90,000 60,000 Total $4,800,000 2,700,000 $2,100,000 700,000 $1,400,000 600,000 $ 800,000 b) Calculate the break-even units for each product for each of the preceding sales mixes.
3. More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini- sanders for next year. The projected income statement is as follows: Regular Sander $3,000,000 1,800,000 $1,200,000 Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common fixed expenses Operating income i. ii. iii. iv. 250,000 $ 950,000 Regular Sander 75,000 60,000 30,000 30,000 a) Set up the given income statement on a spreadsheet (e.g., Excel™). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d). Mini-Sander $1,800,000 900,000 $ 900,000 450,000 S 450,000 Mini Sander 37,500 60,000 90,000 60,000 Total $4,800,000 2,700,000 $2,100,000 700,000 $1,400,000 600,000 $ 800,000 b) Calculate the break-even units for each product for each of the preceding sales mixes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:3. More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-
sanders for next year. The projected income statement is as follows:
Sales
Less: Variable expenses
Contribution margin
Less: Direct fixed expenses
Product margin
Less: Common fixed expenses
Operating income
i.
Regular Sander
$3,000,000
1,800,000
$1,200,000
iii.
iv.
250,000
$ 950,000
Regular Sander
75,000
60,000
30,000
30,000
a) Set up the given income statement on a spreadsheet (e.g., Excel™). Then, substitute the
following sales mixes, and calculate operating income. Be sure to print the results for
each sales mix (a through d).
Mini-Sander
$1,800,000
900,000
S 900,000
450,000
S 450,000
Mini Sander
37,500
60,000
90,000
60,000
Total
$4,800,000
2,700,000
$2,100,000
700,000
$1,400,000
600,000
$ 800,000
b) Calculate the break-even units for each product for each of the preceding sales mixes.
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