ZuoTi.Pro
Question

Cornerstone Exercise 16.5 (Algorithmic) Multiple-Product Break-Even and Target Profit Vandenberg, Inc., produces and sells two products:...

Cornerstone Exercise 16.5 (Algorithmic)
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 40,000 ceiling fans and 80,000 table fans in the coming year. Product price and cost information includes:

Ceiling Fan Table Fan
Price $58   $13  
Unit variable cost $16   $9  
Direct fixed cost $22,400   $47,000  

Common fixed selling and administrative expenses total $86,000.

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? Do not round intermediate calculations. If required, round your final answers to the nearest whole number.

Break-even ceiling fans
Break-even table fans


Hide

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

$  

$  

$  

  

  

  

$  

$  

$  

  

  

  

$  

$  

$  

  

$  

4. What if Vandenberg, Inc., wanted to earn operating income equal to $14,800? 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 $14,800.) Round your intermediate calculations and final answers to nearest number.

Break-even ceiling fans
Break-even table fans
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Sales mix of ceiling fans to table fan 0.5
Ceiling Fan Table Fan
Price per unit 58 13
Variable cost 16 9
Contribution Margin per unit 42 4
Sales Mix 0.333333333 0.666666667
Weighetd average CM 14 2.666666667 16.66666667
Break even fans = Fixed costs/Weighted average CM per unit
                                                                                                 9,324.00 fans
Ceiling Fans              3,108
Table Fans              6,216
Contribution Margin Income statement
Ceiling Fan Table Fan Total
Revenue          180,264            80,808          261,072
Variable costs            49,728            55,944          105,672
Contribution Margin          130,536            24,864          155,400
Direct Fixed cost            22,400            47,000            69,400
Segment Margin          108,136          (22,136)            86,000
Common fixed cost            86,000
Net operating income 0
Total fans required       10,212.00
Ceiling Fans              3,404
Table Fans              6,808

А -40000/80000 1 Sales mix of ceiling fans to table fan 2 3 Ceiling Fan Table Fan =C4-C5 16 =B4-B5 =0.5/1.5 =B6 B7 =1/1.5 =C6

1 0
Add a comment
Know the answer?
Add Answer to:
Cornerstone Exercise 16.5 (Algorithmic) Multiple-Product Break-Even and Target Profit Vandenberg, Inc., produces and sells two products:...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

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

    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: Ceiling Fan Table Fan Price $58   $17   Unit variable cost $14   $4   Direct fixed cost $23,200   $47,000   Common fixed selling and administrative expenses total $84,000. 1. What is the sales mix estimated for next year (calculated to the lowest whole...

  • 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 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes:Ceiling FanTable FanPrice$60  $13  Unit variable cost$13  $7  Direct fixed cost$24,600  $47,000  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 = fill in the blank c5a24b074f9f057_1 : fill in the blank...

  • Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs...

    Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $99,750. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...

  • Instructions Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to...

    Instructions Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDS and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDS and 4,500 equipment sets. Information on the two products is as follows: Equipment Sets DVDS Price $8 $25 Variable cost per unit 15 Total fixed cost is $98,550. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...

  • Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...

    Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 12,150,000 Total variable cost 7,533,000 Contribution margin $ 4,617,000 Total fixed cost 2,437,776 Operating income $ 2,179,224 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest...

  • Multiple Product Break-Even and Net Income Planning Grand Company manufactures and sells the following three products:...

    Multiple Product Break-Even and Net Income Planning Grand Company manufactures and sells the following three products: Economy Standard Deluxe Unit sales 10,000 6,000 4,000 Unit sales price $50 $58 $70 Unit variable cost $30 $32 $36 Assume that total fixed cost is $344,400. a. Compute the net income before income tax based on the sales volumes shown above. Economy Standard Deluxe Unit contribution margin Answer Answer Answer Total contribution margin Answer Answer Answer Net income before income tax: $Answer b....

  • Multiple Product Break-Even and Net Income Planning Grand Company manufactures and sells the following three products:...

    Multiple Product Break-Even and Net Income Planning Grand Company manufactures and sells the following three products: Economy Standard Deluxe Unit sales 10,000 6,000 4,000 Unit sales price $49 $57 $69 Unit variable cost $30 $32 $36 Assume that total fixed cost is $354,000. a. Compute the net income before income tax based on the sales volumes shown above. Economy Standard Deluxe Unit contribution margin $ 19 $ 25 $ 33 Total contribution margin 190000 150000 132000 Net income before income...

  • Multiple Products, Break-Even Analysis, Operating Leverage Carlyle Lighting Products produces two different types of lamps: a...

    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 Total variable cost 400,000 Contribution margin $200,000 Total fixed cost 150,000 Operating income $50,000 The owner of Carlyle estimates that 60% of the sales revenues will be produced by floor lamps and the remaining 40% by...

  • EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a....

    EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...

  • 2. PR.07.57 eBook Multiple Products, Break-Even Analysis, Operating Leverage Carlyle Lighting Products produces two different types...

    2. PR.07.57 eBook 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 Total variable cost 400,000 Contribution margin $200,000 Total fixed cost 150,000 Operating income $50,000 The owner of Carlyle estimates that 60% of the sales revenues will be produced by floor lamps and the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT