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Jordan Company produces two products. Budgeted annual income statements for the two products are provided as follows. PowerLiteTotalBudgetedPerBudgetedBudgetedPerBudgetedBudgetedBudgetedNumberUnitAmountNumberUnitAmountNumberAmountSales180@$650=$117,000720@$570=$410,400900$527,400Variable cost180@430=(77,400)720@390=(280,800)900(358,200)Contribution margin180@220=39,600720@180=129,600900169,200Fixed cost(17,000)(95,800)(112,800)Net income$22,600$33,800$56,400 Required: Based on

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

PowerLiteTotalBudgetedPerBudgetedBudgetedPerBudgetedBudgetedBudgetedNumberUnitAmountNumberUnitAmountNumberAmountSales180@$650=$117,000720@$570=$410,400900$527,400Variable cost180@430=(77,400)720@390=(280,800)900(358,200)Contribution margin180@220=39,600720@180=129,600900169,200Fixed cost(17,000)(95,800)(112,800)Net income$22,600$33,800$56,400

Required:

  1. Based on budgeted sales, determine the relative sales mix between the two products.
  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 Jordan must sell to break even.
  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. Determine the margin of safety based on the combined sales of the two products.

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Jordan 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 180 B S 650 = $117,000 720 e S 570 = $ 410,400 900 S 527,400 Variable cost 180 B 430 = (77,400) 720 e 390 = (280,800) 900 $358,200) Contribution margin 180 8 220 = 39,600 720 @ 180 = 129,600 900 169,200 Fixed cost (17,000) (95,800) (112,300) Net income $ 22,600 $ 33,800 $ 56,400 ' Required: 3. 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 Jordan 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 ofthe two products

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