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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 $80,000$ table fans in the coming year. Product price and cost information includes:

Ceiling Fan Table Fan

Price $$64$ $$17$

Unit variable cost $$10$ $$9$

Direct fixed cost $$23,000$ $$41,000$

Common fixed selling and administrative expenses total $$96,000.$

Required:

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$1.$ 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 $=$ fill in the blank d$9$e$03$a$057027$f$84\_1$

$3$

: fill in the blank d$9$e$03$a$057027$f$84\_2$

$8$

$2.$ 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 fill in the blank d$9$e$03$a$057027$f$84\_3$

$2,124$

Break$-$even table fans fill in the blank d$9$e$03$a$057027$f$84\_4$

$5,664$

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Feedback

$1.$ Sales mix is the ratio of one product to another.

$2.$ See Cornerstone $16\mathrm{.}5.$

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$3.$ 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.

Vandenberg, Inc.

Contribution$-$Margin$-$Income Statement

For the Coming Year

Ceiling Fans Table Fans Total

Sales

$Sales

$Sales

$Sales

Less: Variable expenses

Less: Variable expenses

Less: Variable expenses

Less: Variable expenses

Contribution margin

$Contribution margin

$Contribution margin

$Contribution margin

Less: Direct fixed expenses

Less: Direct fixed expenses

$-23,000$

Less: Direct fixed expenses

$-41,000$

Less: Direct fixed expenses

Product margin

$Product margin

$Product margin

$Product margin

Less: Common fixed expenses

Less: Common fixed expenses

$96,000$

Operating income

$Operating income

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$4.$ What if Vandenberg, Inc., wanted to earn operating income equal to $$13,200?$ Calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income. $($Hint: Remember to form a package of ceiling fans and table fans based on the sales mix and to first calculate the number of packages to earn an operating income of $$13,200.)$ Round your intermediate calculations and final answers to nearest number.

Break$-$even ceiling fans fill in the blank $1941$a$0$fa$0070$f$85\_1$

$2,298$

Break$-$even table fans fill in the blank $1941$a$0$fa$0070$f$85\_2$

$6,128$