multiple products LO 3-6Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows.LitePowerTotalBudgeted Budgeted PerAmountNumber Unit360 @ $600 $ 216,000840 @ $580-TATTATTH360 @ 370 (133,200) 840 @ 39082,800840 @ 190 = 159, 600(10,000)$ 72,800SalesVariable costContribution marginFixed costNet incomeRequired A Required BBudgeted PerNumber UnitComplete this question by entering your answers in the tabs below.Margin of safety360 @ 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 combinedproducts.f. Determine the margin of safety based on the combined sales of the two products.Required EBudgeted Budgeted BudgetedNumber AmountRequired FAmount$ 487,200 1,200 $703,200(327,600) 1,200 (460,800)1,200 242,400(141,400)$ 101,000(131,400)$ 28,200Determine 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 3-6Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows.LitePowerTotalBudgeted Budgeted PerAmountNumber UnitP-TAITEITI360 @ $600 = $ 216,000840 @ $580 = $ 487,200 1,200 $703,200360 @ 370 = (133,200) 840 @ 390 = (327,600) 1,200 (460,800)840 @ 190 = 159,600 1,200 242,400360 @ 230 = 82,800(10,000)(141,400)$ 101,000$ 72,800SalesVariable costContribution marginFixed costNet incomeBudgeted PerNumber UnitComplete this question by entering your answers in the tabs below.Required A Required BSalesPowerRequired: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 combinedproducts.f. Determine the margin of safety based on the combined sales of the two products.LiteBudgeted Budgeted BudgetedTotalAmountRequired C Required D Required EVerify the break-even point by preparing an income statement for each product as well as an income statement for thecombined products.Required F(131,400)$ 28,200NumberAmount

Break Even Point :— It is the point at which total cost is equal to total revenue. At this point,…

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))

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q