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 $$54$ $$12$

Unit variable cost $$15$ $$6$

Direct fixed cost $$25,400$ $$46,000$

Common fixed selling and administrative expenses total $$84,000.$

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 $775$b$20041$fb$8$fea$\_1$

$3$

: fill in the blank $775$b$20041$fb$8$fea$\_2$

$8$

$2.$ 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 $775$b$20041$fb$8$fea$\_3$

$2,825$

Break$-$even table fans fill in the blank $775$b$20041$fb$8$fea$\_4$

$7,535$

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

$2.$ Calculate the package unit contribution margin. Use the following formula to calculate the total number of breakeven packages for the sales mix: Total fixed cost $/$ Package contribution margin. Finally, use the ratio from Requirement $1$ to determine number of break$-$even units for each product.

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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

$152,550$

$Sales

$90,420$

$Sales

$243,970$

Less: Variable expenses

Less: Variable expenses

$42,375$

Less: Variable expenses

$45,210$

Less: Variable expenses

$87,585$

Contribution margin

$Contribution margin

$110,175$

$Contribution margin

$45,210$

$Contribution margin

$155,385$

Less: Direct fixed expenses

Less: Direct fixed expenses

$25,400$

Less: Direct fixed expenses

$46,000$

Less: Direct fixed expenses

$71,400$

Common fixed expenses

$Common fixed expenses

$84,775$

$Common fixed expenses

$-790$

$Common fixed expenses

$83,985$

Less: Common fixed expenses

Less: Common fixed expenses

$84,000$

Operating income

$Operating income

$15$

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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 $63$f$84$e$013$fd$8079\_1$

Break$-$even table fans fill in the blank $63$f$84$e$013$fd$8079\_2$