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Regular Sanders Mini-Sanders

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More-power company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for the next year.The projected income statement is as follows;Regular sanders mini-sanders Total;Sales 3,000,000 1,800,000 4,800,000;Less:variable 1,800,000 900,000 2,700,000;expenses;Contribution margin 1,200,000 900,000 2,100,000;Less:direct fixed 250,000 450,000 700,000;Product margin 950,000 450,000 1,400,000;Less:common fixed 600,000;expenses;operating income 800,000;expenses;1.set up the given income statement on a spreadsheet.Then,substitute the following sales mixes, and calculate operating income.;Regular sanders mini-sander;a.75,000 37,500;b.60,000 60,000;c.30,000 90,000;d.30,000 60,000;2.Calculate the break-even units for each product for each of the preceding sales mixes.

 

Paper#35143 | Written in 18-Jul-2015

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