1. Franklin Company produces two products. Budgeted annual income statements for the two products are provided here:

	Power										Lite										Total
	Budgeted	Per					Budgeted				Budgeted	Per					Budgeted				Budgeted	Budgeted
	Number	Unit					Amount				Number	Unit					Amount				Number	Amount
Sales	100	@	$	600		=	$	60,000			900	@	$	560		=	$	504,000			1,000	$	564,000
Variable cost	100	@		320		=		(32,000	)		900	@		430		=		(387,000	)		1,000		(419,000	)
Contribution margin	100	@		280		=		28,000			900	@		130		=		117,000			1,000		145,000
Fixed cost								(11,000	)									(90,500	)				(101,500	)
Net income							$	17,000									$	26,500				$	43,500

Required:

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

Determine the weighted-average contribution margin per unit.

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

Relative percentage for Power		%
Relative percentage for Lite		%

B.

Determine the weighted-average contribution margin per unit.

Weighted-average contribution margin per unit