3-25A (Static) Determining the break-even point and margin of safety for a company with multiple products LO 3-6 Kidd Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Sales Budgeted Number 160 Per Unit Budgeted Amount Budgeted Number Per Unit Budgeted Amount Budgeted Number @ $500 = $80,000 640 Variable cost 160 @ 320 = (51,200) 640 @ $450 @ 330 $288,000 = (211,200) 800 800 Contribution margin 160 180 Fixed cost Net income = 28,800 (12,000) $16,800 640 120 = 76,800 (54,000) $22,800 800 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 completing the following income statement. f. Determine the margin of safety based on the combined sales of the two products. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Verify the break-even point by completing the following income statement. Power Lite Total Sales $ 50,000 $ Variable costs (32,000) 180,000 $ (132,000) 230,000 (164,000) Contribution margin $ 18,000 $ 48,000 $ Fixed cost 66,000 (66,000) Net income (Loss) < Required D Required F >