Question: Multiple - Product Break - Even and Target Profit Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans

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 20,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes:
Common fixed selling and administrative expenses total \$96,000.
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 =
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
Break-even table fans
4. What if Vandenberg, Inc., wanted to earn operating income equal to \(\$ 12,000\)? 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 \(\$ 12,000\).) Round your intermediate calculations and final answers to nearest number.
Break-even ceiling fans
Break-even table fans
Multiple - Product Break - Even and Target Profit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!