Kidd 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 Kidd 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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Lite Total Power Budgeted Budgeted Budgeted Budgeted Per Number Budgeted Budgeted Per Unit Amount Number Amount Amount $80,000 (5 1.200) 28,800 (12,000) 16,800 Number Unit @$500 320 @ 180 Sales Variable cost Contribution margin Fixed cost Net income 160 160 160 640 $450 640 640 288,000 800 368,000 (21 1.200) 800 (262.400) = @330 120 - = 105,600 (66,000 $39,600 76,800 800 $ 22,800