Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 30,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $66 $19 Unit variable cost $9 $4 Direct fixed cost $20,800 $48,000 Common fixed selling and administrative expenses total $80,000. 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
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 30,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $66 $19 Unit variable cost $9 $4 Direct fixed cost $20,800 $48,000 Common fixed selling and administrative expenses total $80,000. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vanderberg
Please answer #2, #3, and #4.
Do not answer #1. Thank you!
![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 70,000 table fans
in the coming year. Product price and cost information includes:
Ceiling Fan
Table Fan
Price
$66
$19
Unit variable cost
$9
$4
Direct fixed cost
$20,800
$48,000
Common fixed selling and administrative expenses total $80,000.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facb9658b-7b91-43ea-9f1d-832c92b61562%2Fdf2e389a-ae3f-4def-955d-c4ea005e0c6f%2Far962bj_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 70,000 table fans
in the coming year. Product price and cost information includes:
Ceiling Fan
Table Fan
Price
$66
$19
Unit variable cost
$9
$4
Direct fixed cost
$20,800
$48,000
Common fixed selling and administrative expenses total $80,000.
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
![zero, enter "0". Enter any negative product margin and losses with a minus sign. Do not round intermediate calculations. Round your final answers t
nearest dollar.
Vandenberg, Inc.
Contribution-Margin-Income Statement
For the Coming Year
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 $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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facb9658b-7b91-43ea-9f1d-832c92b61562%2Fdf2e389a-ae3f-4def-955d-c4ea005e0c6f%2F1sm8ij_processed.jpeg&w=3840&q=75)
Transcribed Image Text:zero, enter "0". Enter any negative product margin and losses with a minus sign. Do not round intermediate calculations. Round your final answers t
nearest dollar.
Vandenberg, Inc.
Contribution-Margin-Income Statement
For the Coming Year
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 $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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