Fanning 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 190 $ 590 $ 112,100 760 $ 560 $ 425,600 950 $ 537,700 Variable cost 190 350 (66,500 ) 760 390 (296,400 ) 950 (362,900 ) Contribution margin 190 240 45,600 760 170 129,200 950 174,800 Fixed cost (19,000 ) (73,000 ) (92,000 ) Net income $ 26,600 $ 56,200 $ 82,800 Required Based on budgeted sales, determine the relative sales mix between the two products Determine the weighted average contribution margin per unit Calculate the break even point in total number of units Determine the number of units of each product Fanning must sell to break even Verify the break even point by preparing an income statement for each product as well as an income statement for the combined products Determine the margin of safety based on the combined sales of the two products Based on budgeted sales, determine the relative sales mix between the two products Relative percentage for Power Relative percentage for Lite Determine the weighted average contribution margin per unit Weighted average contribution margin per unit Calculate the break even point in total number of unit Break even point units Determine the number of units of each product Fanning must sell to break even Required sales for Power units Required sales for Lite units Verify the break even point by preparing an income statement for each product as well as an income statement for the combined products Power Lite Total Sales Variable costs Contribution margin Fixed cost Net income (Loss) Determine the margin of safety based on the combined sales of the two products (Round your answer to 1 decimal place (i e , 0 234 should be entered as 23 4)) Margin of safety

Question

Fanning 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 190   $ 590   $ 112,100 760   $ 560   $ 425,600 950 $ 537,700 Variable cost 190   350   (66,500 ) 760   390   (296,400 ) 950 (362,900 ) Contribution margin 190   240   45,600 760   170   129,200 950 174,800 Fixed cost (19,000 ) (73,000 ) (92,000 ) Net income $ 26,600 $ 56,200 $ 82,800 Required  Based on budgeted sales, determine the relative sales mix between the two products  Determine the weighted average contribution margin per unit  Calculate the break even point in total number of units  Determine the number of units of each product Fanning must sell to break even  Verify the break even point by preparing an income statement for each product as well as an income statement for the combined products  Determine the margin of safety based on the combined sales of the two products  Based on budgeted sales, determine the relative sales mix between the two products  Relative percentage for Power   Relative percentage for Lite   Determine the weighted average contribution margin per unit  Weighted average contribution margin per unit Calculate the break even point in total number of unit  Break even point units Determine the number of units of each product Fanning must sell to break even  Required sales for Power units Required sales for Lite units Verify the break even point by preparing an income statement for each product as well as an income statement for the combined products  Power Lite Total Sales Variable costs Contribution margin Fixed cost Net income (Loss) Determine the margin of safety based on the combined sales of the two products  (Round your answer to 1 decimal place (i e , 0 234 should be entered as 23 4)) Margin of safety

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Fanning Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Per Budgeted Budgeted Per

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	Power								Lite								Total
	Budgeted	Per				Budgeted			Budgeted	Per				Budgeted			Budgeted	Budgeted
	Number	Unit				Amount			Number	Unit				Amount			Number	Amount
Sales	190	@	$	590	=	$	112,100		760	@	$	560	=	$	425,600		950	$	537,700
Variable cost	190	@		350	=		(66,500	)	760	@		390	=		(296,400	)	950		(362,900	)
Contribution margin	190	@		240	=		45,600		760	@		170	=		129,200		950		174,800
Fixed cost							(19,000	)							(73,000	)			(92,000	)
Net income						$	26,600							$	56,200			$	82,800