More-power company | Accounting homework help

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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.