Cornerstone Exercise 16.5 (Algorithmic) 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 50,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes:

	Ceiling Fan				Table Fan
Price		$62				$15
Unit variable cost		$15				$7
Direct fixed cost		$24,400				$40,000

Common fixed selling and administrative expenses total $70,000.

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 = 5 : 6

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? Do not round intermediate calculations. If required, round your final answers to the nearest whole number.

Break-even ceiling fans = 2,375

Break-even table fans = 2,849

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Correct

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.

I keep getting $147,250 for sales revenue of ceiling fans, but the program says it is the wrong answer. Ive looked everywhere for a solution, but cannot figure out why it is incorrect, when I believe it should be correct. Is there something I am missing? If someone could help out with question three, that would be great!