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Problem 3-25A Determining the break-even point and margin of safety for a company with multiple products LO 3-6 Watt Company produces two products. Budgeted annual
Problem 3-25A Determining the break-even point and margin of safety for a company with multiple products LO 3-6 Watt Company produces two products. Budgeted annual income statements for the two products are provided here: Power Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Amount Number Amount 360 @ $600 = $216,000 840 @ $580 = $ 487,200 1.200 $ 703.200 Number Unit Amount Number Unit Sales Variable cost Contribution margin 360 @ 230= 82.800 840 @ 190= 159,600 1.200 242.400 Fixed cost 1.010.600 141,400) 101,000 (10,000) (131,400) Net income $ 72,800 $ 28,200
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