Adams Company produces two products, Budgeted annual income statements for the two products are provided as follows Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount Sales 160 @ $500 $ 80,000 640 $450 $ 288,000 800 S 368,000 Variable cost 160 320 (51 200) 640 330 (211,200) 800 (262,400) Contribution margin 160 @ 180 28,888 640 @ 120 76,800 B00 185,600 Fixed cost (12,000) (54,000) (66, 000) Net income $ 16,800 $ 22,800 $ 39,600 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 Adams 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. Complete this question by entering your answers in the tabs below. Required a Required B Required Required Required E Required F Based on budgeted sales, determine the relative sales mix between the two products. % Relative percentage for Power Relative percentage for Lite % Required > Adams Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Totat Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Anount Number Unit Amount Number Anount Sales 160 a $508 $ 80,000 640 05450 $ 288,000 800 5 368,888 Variable cost 160 328 (51 200) 640 @ 330 (211,200) 800 (262,400) Contribution margin 160 @ 188 28,800 640 a 120 76,800 800 185,6ee Fixed cost (12.000) (54,000) (66,080) Net income $ 16,800 $ 22,800 $ 39,600 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 Adams 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. 6. 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 Determine the weighted average contribution margin per unit. Weighted average contribution margin per unit Adams Company produces two products, Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Anount Number Unit Amount Number Amount Sales 160 @ $500 $ 80,000 640 @$450 $ 288,000 800 S 368, cee Variable cost 160 @ 320 (51 200) 640 @ 330 (211,200) 800 (262,400) Contribution margin 160 @ 189 28,800 640 120 76,800 800 185,600 Fixed cost (12,000) (54,000) (66, 000) Net income $ 16,800 $ 22,800 $ 39,600 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 Adams 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. Complete this question by entering your answers in the tabs below. Required A Required B Required Required b Required E Required F Calculate the break-even point in total number of units Break even point units Complete this question by entering your answers in the t Required A Required B Required C Sequired D Requir Determine the number of units of each product Adams must sell Required sales for Power units Required sales for Lite units
