Executive officers of Neil Company have prepared the annual budgets for its two products, Washer and Dryer, as follows.

a. Based on the number of units budgeted to be sold, 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 Neil 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 twoproducts.

  • CreatedFebruary 07, 2014
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