ANSWER QUESTIONS 3&4 ONLY!!! Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $54 $12 Unit variable cost $11 $9 Direct fixed cost $20,800 $41,000 Common fixed selling and administrative expenses total $84,000. Required: 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___ : ____3______ 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 3070 Break-even table fans 4605 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. Ceiling Fans Table Fans Total Sales $_____ $_____ $____ Less: Variable Expenses ____ _____ ____ Contribution margin $____ $____ $___ Less: Direct fixed expenses _____ _____ _____ Product margin $____ $____ $____ Less: Common fixed expenses ____ Operating income $____ 4. What if Vandenberg, Inc., wanted to earn operating income equal to $12,000? 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 $12,000.) Round your intermediate calculations and final answers to nearest number. Break-even ceiling fans _____ Break-even table fans _____
ANSWER QUESTIONS 3&4 ONLY!!! Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $54 $12 Unit variable cost $11 $9 Direct fixed cost $20,800 $41,000 Common fixed selling and administrative expenses total $84,000. Required: 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___ : ____3______ 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 3070 Break-even table fans 4605 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. Ceiling Fans Table Fans Total Sales $_____ $_____ $____ Less: Variable Expenses ____ _____ ____ Contribution margin $____ $____ $___ Less: Direct fixed expenses _____ _____ _____ Product margin $____ $____ $____ Less: Common fixed expenses ____ Operating income $____ 4. What if Vandenberg, Inc., wanted to earn operating income equal to $12,000? 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 $12,000.) Round your intermediate calculations and final answers to nearest number. Break-even ceiling fans _____ Break-even table fans _____
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ANSWER QUESTIONS 3&4 ONLY!!!
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes:
| Ceiling Fan | Table Fan | |
| Price | $54 | $12 |
| Unit variable cost | $11 | $9 |
| Direct fixed cost | $20,800 | $41,000 |
Common fixed selling and administrative expenses total $84,000.
Required:
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___ : ____3______
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 | 3070 |
| Break-even table fans | 4605 |
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.
| Ceiling Fans | Table Fans | Total | |
|
Sales
|
$_____ | $_____ | $____ |
|
Less: Variable Expenses
|
____ | _____ | ____ |
|
Contribution margin
|
$____ | $____ | $___ |
|
Less: Direct fixed expenses
|
_____ | _____ | _____ |
|
Product margin
|
$____ | $____ | $____ |
|
Less: Common fixed expenses
|
____ | ||
|
Operating income
|
$____ |
4. What if Vandenberg, Inc., wanted to earn operating income equal to $12,000? 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 $12,000.) Round your intermediate calculations and final answers to nearest number.
| Break-even ceiling fans | _____ |
| Break-even table fans | _____ |
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