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Power Budgeted Per Stuart Company produces two products. Budgeted annual income statements for the two products are provided as follows. Budgeted Budgeted Per Lite
Power Budgeted Per Stuart Company produces two products. Budgeted annual income statements for the two products are provided as follows. Budgeted Budgeted Per Lite Total Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount Sales 360 $740 $266,400 840 Variable cost 360 460- (165,600) 840 Contribution margin 360 @280- 100,800 840 $ 480 @270- 210- $ 403,200 1,200 $669,600 (226,800) 1,200 (392,400) Fixed cost (14,000) 176,400 (147,700) 1,200 277,200 Net income $ 86,800 $ 28,700 (161,700) $ 115,500 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 Stuart 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 A Required B Required C Required D Required E Required F Based on budgeted sales, determine the relative sales mix between the two products. Relative percentage for Power Relative percentage for Lite 28
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