Multiple-Product Break-Even and Target ProfitVandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 30,000 ceilingfans and 60,000 table fans in the coming year. Product price and cost information includes:Ceiling FanTable FanPrice$50$16Unit variable cost$1$4Direct fixed cost$23,000$42,000Common fixed selling and administrative expenses total $78,000.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. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans andtable fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number.Break-even ceiling fansBreak-even table fans 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales calculated inRequirement 2. If an amount is zero, enter "0". Enter any negative product margin and losses with a minus sign. Do notround intermediate calculations. Round your final answers to nearest dollar.Vandenberg, Inc.Contribution-Margin-Income StatementFor the Coming YearCeiling FansTable FansTotal

1. Sales mix of ceiling fans to table fans = 30000:60000 = 1:2 2. Calculation of Breakeven point…

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Business

Accounting

Multiple-Product Break-Even and Target Profit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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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
$50
$16
Unit variable cost
$1
$4
Direct fixed cost
$23,000
$42,000
Common fixed selling and administrative expenses total $78,000.
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. 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
Ceiling Fans
Table Fans
Total

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