Franklin Company produces two products, Budgeted annual income statements for the two products are provided here: Sales Variable cost Contribution margin Fixed cost Net income Budgeted Number 100 100 100 Per Budgeted Budgeted Unit Amount Number $ 600 - $ 60,000 900 @ 320 = (32,000) 900 @ 280 - 28,000 900 11,000) $ 17,000 Per Budgeted Unit Amount @ $ 560 - $ 504,000 @ 430 - (387,000) @ 130 - 117,000 (90,500) $ 26,500 Total Budgeted Budgeted Number Amount 1,000 $ 564,000 1,000 (419, 000) 1,000 145,000 (101,500) $ 43,500 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 Franklin 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 1. 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 Based on budgeted sales, determine the relative sales mix between the two products. Relative percentage for Power Relative percentage for Lite 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 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Calculate the break-even point in total number of units. Break-even point Required Required > Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Determine the number of units of each product Franklin must sell to break even. Required sales for Power Required sales for Lite 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 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) 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 margin of safety based on the combined sales of the two products. (Round your answer to 1 decimal place. (., 234 should be entered as 23.4)) Margin of salety %
