Finch Company produces two products. Budgeted annual income statements for the two products are provided as follows. Sales Variable cost Contribution margin Fixed cost Net income Budgeted Number 300 300 300 Required A Required B Per Unit @$580 @320 260 Power Relative percentage for Power Relative percentage for Lite c. Calculate the break-even point in total number of units. d. Determine the number of units of each product Finch must sell to break even. Budgeted Amount = $174,000 = (96,000) = 78,000 (14,000) $64,000 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. 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. Budgeted Number 700 32% Required C Required D Required E % 700 700 Answer is not complete. Based on budgeted sales, determine the relative sales mix between the two products. Budgeted Budgeted Amount Number 1,000 1,000 1,000 = $371,000 = (287,000) < Prev = 84,000 (75,100) $8,900 Total 5 of 5 Budgeted Amount $545,000 (383,000) 162,000 (89,100) $72,900 Next >
Finch Company produces two products. Budgeted annual income statements for the two products are provided as follows. Sales Variable cost Contribution margin Fixed cost Net income Budgeted Number 300 300 300 Required A Required B Per Unit @$580 @320 260 Power Relative percentage for Power Relative percentage for Lite c. Calculate the break-even point in total number of units. d. Determine the number of units of each product Finch must sell to break even. Budgeted Amount = $174,000 = (96,000) = 78,000 (14,000) $64,000 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. 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. Budgeted Number 700 32% Required C Required D Required E % 700 700 Answer is not complete. Based on budgeted sales, determine the relative sales mix between the two products. Budgeted Budgeted Amount Number 1,000 1,000 1,000 = $371,000 = (287,000) < Prev = 84,000 (75,100) $8,900 Total 5 of 5 Budgeted Amount $545,000 (383,000) 162,000 (89,100) $72,900 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Finch Company produces two products. Budgeted annual income statements for the two products are provided as follows.
Sales
Variable cost
Contribution margin
Fixed cost
Net income
Budgeted
Number
300
300
300
Required A Required B
Per Unit
@$580
@320
@260
Power
Relative percentage for Power
Relative percentage for Lite
c. Calculate the break-even point in total number of units.
d. Determine the number of units of each product Finch must sell to break even.
Required:
a. Based on budgeted sales, determine the relative sales mix between the two products.
b. Determine the weighted-average contribution margin per unit.
Budgeted
Amount
= $174,000
= (96,000)
= 78,000
(14,000)
$64,000
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.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Budgeted
Number
700
700
700
Required C Required D Required E
32%
%
Based on budgeted sales, determine the relative sales mix between the two products.
< Required A
Required F
Lite
Per Unit
@ $530
@410
@ 120
Required B >
Budgeted
Amount
= $371,000
= (287,000)
= 84,000
(75,100)
$8,900
< Prev
5 of 5
Total
Budgeted Budgeted
Number
1,000
1,000
1,000
Amount
$545,000
(383,000)
162,000
(89,100)
$72,900
Next >
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