Determining the break-even point and margin of safety for a company with multiple products Tottori Company produces two products. Budgeted annual income statements for the two products are provided here: 

.:.

Required

a. Based on budgeted sales, determine the relative sales mix between the two products. 

b. Determine the weighted-average contribution margin per unit. 

c. Calculate the break-even point in total number of units. 

d. Determine the number of units of each product Tottori must sell to break even. 

e. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. 

f. Determine the margin of safety based on the combined sales of the two products. 

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Power Total Lite Budgeted Budgeted Budgeted Number Per Budgeted Budgeted Budgeted Number Per Unit Amount Number Unit Amount Amount 160 160 Sales Variable cost Contribution margin Fixed cost Net income @ $500 $450 @ 330 @ 120 $288,000 (211,200) 76,800 (54,000) $ 22,800 800 $80,000 640 640 $368,000 (262,400) 105,600 (66,000) $ 39,600 (51,200) 28,800 (12,000) @ 320 @ 180 640 800 160 $16,800