Problem 4-34 Multiple Products, Break-Even Analysis, Operating Leverage Carlyle Lighting Products produces two different types of lamps: a floor lamp and a desk lamp. Floor lamps sell for $30, and desk lamps sell for $20. The projected income statement for the coming year follows: Sales $600,000 Less: Variable costs 400,000 Contribution margin 200,000 Less: Fixed costs 150,000 Operating income $ 50,000 The owner of Carlyle estimates that 60 percent of the sales revenues will be produced by floor lamps and the remaining 40 percent by desk lamps. Floor lamps are also responsible for 60 per- cent of the variable expenses. Of the fixed expenses, one-third are common to both products, and one-half are directly traceable to the floor lamp product line. Complete Problem 4-34, and provide the required information. NOTE: to enter numeric answers, see Exercise 4-24, Question 1, for instructions. Required: (1) The sales revenue that must be earned for Carlyle to break even is A dollars. (2) HINT: first use your understanding of the % of desk lamps and the % of floor lamps to determine the sales mix. Once you have this information you can use this to calculate the basket contribution margin. The basket contribution margin is A dollars. The number of floor lamps that must be sold for Carlyle to break even is A units. The number of desk lamps that must be sold for Carlyle to break-even is units. (3) The operating leverage is A The percentage change in profits is A percent