Baird 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	360	@	$	520		=	$	187,200			540	@	$	500		=	$	270,000			900	$	457,200
Variable cost	360	@		320		=		(115,200	)		540	@		300		=		(162,000	)		900		(277,200	)
Contribution margin	360	@		200		=		72,000			540	@		200		=		108,000			900		180,000
Fixed cost								(10,000	)									(90,000	)				(100,000	)
Net income							$	62,000									$	18,000				$	80,000

Required:

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

   1. Relative Percentage for Power: ___%

   2. Relative Percentage for Life: __%

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

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

4. Determine the number of units of each product Baird must sell to break even.

   1. Required sales for Power __ units

   2. Required sales for Life __ units

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

6. 	Power	Lite	Total
   Sales
   Variable costs
   Contribution margin
   Fixed cost
   Net income (Loss)

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