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).

   	Regular Sander	Mini-Sander
   a.	75,000	37,500
   b.	60,000	60,000
   c.	30,000	90,000
   d.	30,000	60,000

   
   

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

Transcribed Image Text:

Regular Sander Mini-Sander Total Sales $3,000,000 S1800,000 $4,800,000 2,700,000 $2,100,000 Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common fixed expenses Operating income 1,800,000 $1,200,000 900,000 S 900,000 250,000 450,000 700,000 $ 950,000 S 450,000 $1,400,000 600,000 $ 800,000 Regular Sander Mini-Sander Total Sales $3,000,000 S1800,000 $4,800,000 2,700,000 $2,100,000 Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common fixed expenses Operating income 1,800,000 $1,200,000 900,000 S 900,000 250,000 450,000 700,000 $ 950,000 S 450,000 $1,400,000 600,000 $ 800,000

Answer rating: 100% (QA)

Answer Firstly we have to calculatae selling price and variable cost of each sander Regular Sander M... View the full answer