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Zachary Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Budgeted Budgeted Budgeted Budgeted
Zachary Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted Number Per Unit Amount Number Per Unit Amount Number Amount Sales 250 @ $650 = $162, 500 1, 000 @ $680 = $680,000 1, 250 $842, 500 Variable cost 250 @ 410 = (102, 500) 1, 090 @ 410 = (410,000) 1, 250 (512, 500) Contribution margin 250 @ 240 = 60,000 1, 000 @ 270 = 270,000 1, 250 330, 000 Fixed cost (25,000 (199, 400) (224,400) Net income $35,000 $70, 600 $105, 600 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 Zachary must sell to break even. e. Verify the break-even point by completing the following income statement 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.d. Determine the number of units of each product Zachary must sell to break even. e. Verify the break-even point by completing the following income statement. 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 Determine the number of units of each product Zachary must sell to break even. Required sales for Power units Required sales for Lite units Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Verify the break-even point by completing the following income statement. Power Lite Total Sales Variable costs Contribution margin Fixed cost Net income (Loss)
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