Rooney Company produces two products. Budgeted annual income statements for the two products are provided as follows.PowerLiteTotalBudgetedPerBudgeted BudgetedPerBudgetedBudgeted BudgetedNumberUnitAmountNumberUnitAmountNumberAmount@ $ 700@ 380$ 319,200(168,000)151,200$ 487,200(259,200)228,000(114,000)$ 114,000Sales240$168,000560@ $ 570800Variable cost(91,200)76,800|(19,000)$ 57,800240560@300 =800%3DContribution margin240320560@270800Fixed cost(95,000)Net income$56,200Required: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 producte. 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.ey must sell to break even.Complete this question by entering your answers in the tabs below.Required ARequired BRequired CRequired DRequired ERequired FDetermine the number of units of each product Rooney must sell to break even.Required sales for PowerunitsRequired sales for Liteunits< Required cRequired E >

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Rooney 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 Number Unit Number Amount $ 487,200 (259,200) 228,000 (114,000) Amount Amount @ $ 700 @ 380 = @ 320 = = $168,000 (91,200) $ 319,200 (168,000) 151,200 Sales 240 560 @ $ 570 800 Variable cost 240 560 300 = 800 Contribution margin 240 76,800 560 270 = 800 Fixed cost |(19,000) (95,000) Net income $ 57,800 $ 56,200 $ 114,000

Rooney 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 Number Unit Number Amount $ 487,200 (259,200) 228,000 (114,000) Amount Amount @ $ 700 @ 380 = @ 320 = = $168,000 (91,200) $ 319,200 (168,000) 151,200 Sales 240 560 @ $ 570 800 Variable cost 240 560 300 = 800 Contribution margin 240 76,800 560 270 = 800 Fixed cost |(19,000) (95,000) Net income $ 57,800 $ 56,200 $ 114,000

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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