Kidd Company produces two products. Budgeted annual income statements for the two products are provided here:

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.

	Power										Lite										Total
	Budgeted	Per					Budgeted				Budgeted	Per					Budgeted				Budgeted	Budgeted
	Number	Unit					Amount				Number	Unit					Amount				Number	Amount
Sales	160	@	$	500		=	$	80,000			640	@	$	450		=	$	288,000			800	$	368,000
Variable cost	160	@		320		=		(51,200	)		640	@		330		=		(211,200	)		800		(262,400	)
Contribution margin	160	@		180		=		28,800			640	@		120		=		76,800			800		105,600
Fixed cost								(12,000	)									(54,000	)				(66,000	)
Net income							$	16,800									$	22,800				$	39,600