Gibson Company produces two products. Budgeted annual income statements for the two products are provided as follows.

	Power			Lite			Total
	Budgeted Number	Per Unit	Budgeted Amount	Budgeted Number	Per Unit	Budgeted Amount	Budgeted Number	Budgeted Amount
Sales	320	@ $640	= $204,800	480	@ $590	= $283,200	800	$488,000
Variable cost	320	@ 400	= (128,000)	480	@ 350	= (168,000)	800	(296,000)
Contribution margin	320	@ 240	= 76,800	480	@ 240	= 115,200	800	192,000
Fixed cost			(15,000)			(93,000)		(108,000)
Net income			$61,800			$22,200		$84,000

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 Gibson must sell to break even.

Verify the break-even point by completing the following income statement.

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