More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next year. The projected income statement is as follows:

Required:
1. Set up the given income statement on a spreadsheet (e.g., Excel„¢). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d).

2. Calculate the break-even units for each product for each of the preceding sales mixes.

Transcribed Image Text:

Regular Sander Mini-Sander Total Sales Less: Variable expenses Contribution margin Product margin Operating income $3,000,000 1,800,000 $1,200,000 $1,800,000 900,000 $ 900,000 450,000 S 450,000 S4,800,000 2,700,000 S2,100,000 700,000 $1,400,000 600,000 S 800,000 Less: Direct fixed expenses 250,000 $ 950,000 Less: Common fixed expenses Regular Sander Mini-Sander a. 75,000 b. 60,000 C. 30,000 d. 30,000 37,500 60,000 90,000 60,000