Schenk, Inc., sells desk lamps and desks. The following information is from the June income statement.

Schenk’s management is interested in knowing the number of lamps and desks it must sell to earn \($10,000.00\) of net income.

Instructions:

Schenk’s managers need sales information assuming that the company earns \($10,000.00\) of monthly net income. Calculate the following amounts to achieve the \($10,000.00\) planned net income.

a. Sales mix.

b. Contribution margin rate.

c. Total sales dollars.

d. Product sales dollars.

e. Product unit sales.

Transcribed Image Text:

Net Sales: Lamps (1,000 @ $40.00). Desks (240 @ $250.00). Total Net Sales Variable Costs: Lamps (1,000 @ $30.00). Desks (240 @ $125.00). Total Variable Costs Contribution Margin. Fixed Costs Net Income Schenk, Inc. Income Statement For Month Ended June 30, 20-- $40,000.00 60,000.00 $100,000.00 $30,000.00 30,000.00 60,000.00 $ 40,000.00 38.000.00 $ 2,000.00