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 $56
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 | $56 | $17 | |||||
| Unit variable cost | $13 | $8 | |||||
| Direct fixed cost | $21,200 | $43,000 |
Common fixed selling and administrative expenses total $98,000.
Required:
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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.
| Ceiling Fans | Table Fans | Total | |
| Sales | $______ | $______ | $_______ |
| Less: Variable expenses | ______ | ______ | ______ |
| Contribution margin | $_______ | $_______ | $_____ |
| Less: Direct fixed expenses | _______ | ________ | _____ |
| Product margin | $_____ | $________ | $______ |
| Less: Common fixed expenses | ____ | ______ | |
| Operating loss | $____ | $______ |
. What if Vandenberg, Inc., wanted to earn operating income equal to $14,800? 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 $14,800.) Round your intermediate calculations and final answers to nearest number.
| Break-even ceiling fans | ______ |
| Break-even table fans | _____ |
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