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: 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 $__________ 4. 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 _________
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:
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
|
$__________ |
4. 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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