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

	Power										Lite										Total
	Budgeted	Per					Budgeted				Budgeted	Per					Budgeted				Budgeted	Budgeted
	Number	Unit					Amount				Number	Unit					Amount				Number	Amount
Sales	200	@	$	500		=	$	100,000			800	@	$	560		=	$	448,000			1,000	$	548,000
Variable cost	200	@		290		=		(58,000	)		800	@		380		=		(304,000	)		1,000		(362,000	)
Contribution margin	200	@		210		=		42,000			800	@		180		=		144,000			1,000		186,000
Fixed cost								(12,000	)									(99,600	)				(111,600	)
Net income							$	30,000									$	44,400				$	74,400

Required:

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 of the two products.

Required E

PLEASE PROVIDE STEP BY STEP AND WHAT YOU DID TO GET EACH ANSWER OR RESPONSE

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)

Required F

Determine the margin of safety based on the combined sales of the two products. (Round your answer to 1 decimal place.(i.e., .234 should be entered as 23.4))

What is the Margin of safety = ? %