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Need help with A- F Vernon Company produces two products. Budgeted annual income statements for the two products are provided here: Lite Total Power Budgeted
Need help with A- F
Vernon Company produces two products. Budgeted annual income statements for the two products are provided here: Lite Total Power Budgeted Per Number Budgeted Budgeted Per Number Budgeted Budgeted Budgeted Unit Unit Number Amount Amount Amount Sales @$600 = $ 216,000 @ 370 840 @$580 487,200 1,200 $ 703, 200 360 Variable cost 360 (133,200) (327,600) 1,200 (460,800) 840 390 Contribution @230 840 @ 190 360 82,800 159,600 1,200 242,400 margin (10, ) (131,400) (141,400) Fixed cost $72,800 $28,200 Net income 101,000 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 Vernon 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 of the two products. Complete this question by entering your answers in the tabs below. Required D Required A Required B Required C 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. (i.e., .234 should be entered as 23.4)) Margin of safety Required E Required FStep by Step Solution
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