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multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Total Sales Variable cost Contribution margin Fixed cost Net income 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. Required A Budgeted Per Unit @ $600 Number 360 360 @ 370 = 360 @ 230 = d. Determine the number of units of each product Vernon 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. Lite Budgeted Budgeted Per Amount Number Unit $ 216,000 840 @ $580 (133,200) @ 390 82,800 @ 190 = (10,000) $ 72,800 840 840 Required B Margin of safety % Required C Required D Budgeted Budgeted Budgeted Amount Number Amount $ 487,200 1,200 $ 703,200 (327,600) 1,200 (460,800) 159, 600 1,200 242,400 (131,400) (141,400) $ 28,200 $ 101,000 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))

multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Total Sales Variable cost Contribution margin Fixed cost Net income 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. Required A Budgeted Per Unit @ $600 Number 360 360 @ 370 = 360 @ 230 = d. Determine the number of units of each product Vernon 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. Lite Budgeted Budgeted Per Amount Number Unit $ 216,000 840 @ $580 (133,200) @ 390 82,800 @ 190 = (10,000) $ 72,800 840 840 Required B Margin of safety % Required C Required D Budgeted Budgeted Budgeted Amount Number Amount $ 487,200 1,200 $ 703,200 (327,600) 1,200 (460,800) 159, 600 1,200 242,400 (131,400) (141,400) $ 28,200 $ 101,000 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))

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Lite Power Total Budgeted Budgeted Per Amount Number Unit 360 @ $600 $ 216,000 840 @ $580 -TATTATTH 360 @ 370 (133,200) 840 @ 390 82,800 840 @ 190 = 159, 600 (10,000) $ 72,800 Sales Variable cost Contribution margin Fixed cost Net income Required A Required B Budgeted Per Number Unit Complete this question by entering your answers in the tabs below. Margin of safety 360 @ 230 % Required C Required D = 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 Vernon 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. Required E Budgeted Budgeted Budgeted Number Amount Required F Amount $ 487,200 1,200 $703,200 (327,600) 1,200 (460,800) 1,200 242,400 (141,400) $ 101,000 (131,400) $ 28,200 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))
Transcribed Image Text:multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Lite Power Total Budgeted Budgeted Per Amount Number Unit 360 @ $600 $ 216,000 840 @ $580 -TATTATTH 360 @ 370 (133,200) 840 @ 390 82,800 840 @ 190 = 159, 600 (10,000) $ 72,800 Sales Variable cost Contribution margin Fixed cost Net income Required A Required B Budgeted Per Number Unit Complete this question by entering your answers in the tabs below. Margin of safety 360 @ 230 % Required C Required D = 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 Vernon 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. Required E Budgeted Budgeted Budgeted Number Amount Required F Amount $ 487,200 1,200 $703,200 (327,600) 1,200 (460,800) 1,200 242,400 (141,400) $ 101,000 (131,400) $ 28,200 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))
multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Lite Power Total Budgeted Budgeted Per Amount Number Unit P-TAITEITI 360 @ $600 = $ 216,000 840 @ $580 = $ 487,200 1,200 $703,200 360 @ 370 = (133,200) 840 @ 390 = (327,600) 1,200 (460,800) 840 @ 190 = 159,600 1,200 242,400 360 @ 230 = 82,800 (10,000) (141,400) $ 101,000 $ 72,800 Sales Variable cost Contribution margin Fixed cost Net income Budgeted Per Number Unit Complete this question by entering your answers in the tabs below. Required A Required B Sales Power 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 Vernon 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. Lite Budgeted Budgeted Budgeted Total Amount Required C Required D Required E Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. Required F (131,400) $ 28,200 Number Amount
Transcribed Image Text:multiple products LO 3-6 Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Lite Power Total Budgeted Budgeted Per Amount Number Unit P-TAITEITI 360 @ $600 = $ 216,000 840 @ $580 = $ 487,200 1,200 $703,200 360 @ 370 = (133,200) 840 @ 390 = (327,600) 1,200 (460,800) 840 @ 190 = 159,600 1,200 242,400 360 @ 230 = 82,800 (10,000) (141,400) $ 101,000 $ 72,800 Sales Variable cost Contribution margin Fixed cost Net income Budgeted Per Number Unit Complete this question by entering your answers in the tabs below. Required A Required B Sales Power 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 Vernon 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. Lite Budgeted Budgeted Budgeted Total Amount Required C Required D Required E Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. Required F (131,400) $ 28,200 Number Amount
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