FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Vandenberg Inc., produces and sells two products; a celling fan and a table fan.Vandenberg plans to sell 30,000 ceiling fans and 70,000 table fans in the coming year.Product price and cost information includes;
Common fixed selling and ad,inistrative expenses total $85,000.
Required:
1. What is the sales mix estimated for the next year (calculated to the lowest whole number for each product)?
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?
3. Prepare a contribution-margin based income statement for Vandenberg,Inc.,based on the unit sales calculated in Requirement 2.
4. What if Vandenberg,Inc.,wanted to earn operating income equal to $14,000? calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income.(hint;Remeber to form a package of ceiling fans and table fans based on the sales mix and to first calculate the number of packages to eearn an operating income of $14,000.)
Transcribed Image Text:Ceiling Fan
Table Fan
Price
S60
$15
Unit variable cost
$12
S7
Direct fixed cost
$23,600
$45,000
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