Question Content Area 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 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $62 $14 Unit variable cost $11 $8 Direct fixed cost $25,200 $47,000 Common fixed selling and administrative expenses total $70,000. Required: Question Content Area 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 = fill in the blank 614f11ff0fb7fcb_1 : fill in the blank 614f11ff0fb7fcb_2 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 fill in the blank 614f11ff0fb7fcb_3 Break-even table fans fill in the blank 614f11ff0fb7fcb_4 Question Content Area 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 $- Select - $- Select - $- Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - - Select - $- Select - Question Content Area 4. What if Vandenberg, Inc., wanted to earn operating income equal to $12,400? 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 $12,400.) Round your intermediate calculations and final answers to nearest number. Break-even ceiling fans fill in the blank a778bc00ff84001_1 Break-even table fans fill in the blank a778bc00ff84001_2

Question Content Area 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 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $62 $14 Unit variable cost $11 $8 Direct fixed cost $25,200 $47,000 Common fixed selling and administrative expenses total $70,000. Required: Question Content Area 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 = fill in the blank 614f11ff0fb7fcb_1 : fill in the blank 614f11ff0fb7fcb_2 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 fill in the blank 614f11ff0fb7fcb_3 Break-even table fans fill in the blank 614f11ff0fb7fcb_4 Question Content Area 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 $- Select - $- Select - $- Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - - Select - - Select - - Select - $- Select - $- Select - $- Select - - Select - $- Select - Question Content Area 4. What if Vandenberg, Inc., wanted to earn operating income equal to $12,400? 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 $12,400.) Round your intermediate calculations and final answers to nearest number. Break-even ceiling fans fill in the blank a778bc00ff84001_1 Break-even table fans fill in the blank a778bc00ff84001_2

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 40E

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Question Content Area

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 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes:

	Ceiling Fan		Table Fan
Price		$62		$14
Unit variable cost		$11		$8
Direct fixed cost		$25,200		$47,000

Common fixed selling and administrative expenses total $70,000.

Required:

Question Content Area

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 = fill in the blank 614f11ff0fb7fcb_1 : fill in the blank 614f11ff0fb7fcb_2

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	fill in the blank 614f11ff0fb7fcb_3
Break-even table fans	fill in the blank 614f11ff0fb7fcb_4

Question Content Area

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
$- Select -	$- Select -	$- Select -
- Select -	- Select -	- Select -
$- Select -	$- Select -	$- Select -
- Select -	- Select -	- Select -
$- Select -	$- Select -	$- Select -
		- Select -
		$- Select -

Question Content Area

4. What if Vandenberg, Inc., wanted to earn operating income equal to $12,400? 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 $12,400.) Round your intermediate calculations and final answers to nearest number.

Break-even ceiling fans	fill in the blank a778bc00ff84001_1
Break-even table fans	fill in the blank a778bc00ff84001_2

**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 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes:

| Price | Ceiling Fan | Table Fan |
|--------------------------|-------------|-----------|
| Selling price | $62 | $14 |
| Unit variable cost | $11 | $8 |
| Direct fixed cost | $25,200 | $47,000 |
| Common fixed selling and administrative expenses total $70,000. | | |

**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 the nearest dollar.

**Vandenberg, Inc.**
**Contribution-Margin Income Statement For the Coming Year**

| | Ceiling Fans | Table Fans | Total |
|---|--------------|------------|-------|
| Sales |_________|__________|_________|
| Variable expenses |_________|__________|_________|
| Contribution margin |_________|__________|_________|
| Direct fixed expenses |_________|__________|_________|
| Product margin |_________|__________|_________|
| Common fixed expenses |_________|__________|_________|
| Operating income |_________|__________|_________|

4. What if Vandenberg, Inc., wanted to earn operating income equal to $12,400? 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

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