Tite Kidd Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit mount Number Unit Amount Number Amount Sales 200 $ 500 - $100,000 800 $ 560 - $ 448,000 1,000 $548,000 Variable cost 200 2 90 - (58,000. 00 380 - (304,000). 1,000 (362,000) Contribution margin 200 @ 210 - 42,000 800 180 - 144,000 1,000 186,000 Pixed cost (12,000) (99,600) (111,600) Net income $ 30,000 $ 44,400 $ 74,400 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 Kidd 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. 1. 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 Required E Required F Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. Lite Total Power 200 $ 800 Sales Variable costs Contribution margin Fixed cost Net Income (Loss) Kidd Company produces two products. Budgeted annual income statements for the two products are provided as follows. 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 800 380 - (304,000) 1,000 (362,000) Contribution margin 200 210 - 42,000 800 @ 180 - 144,000 1,000 186,000 Pixed cost 12,000) (99,600) (111,600) Net income $ 30,000 $ 44,400 $ 74,400 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 Kidd 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 combi products. 1. 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 Determine the margin of safety based on the combined sales of the two products. (Round your answer to 1 decimal place. (i.e., 0.234 should be entered as 23.4)) Margin of safety (Required E
