Kidd Company produces two products. Budgeted annual income statements for the two products are provided as follows.

Power Lite Total

Budgeted Number Per Unit Budgeted Amount Budgeted Number Per Unit Budgeted Amount Budgeted Number Budgeted Amount

Sales $200$ @ $$500=$ $$100,000800$ @ $$560=$ $$448,0001,000$ $$548,000$

Variable cost $200$ @ $290=(58,000)800$ @ $380=(304,000)1,000(362,000)$

Contribution margin $200$ @ $210=42,000800$ @ $180=144,0001,000186,000$

Fixed cost $(12,000)(99,600)(111,600)$

Net income $$30,000$  $$44,400$  $$74,400$

Required:

Based on budgeted sales, determine the relative sales mix between the two products.

Determine the weighted$-$average contribution margin per unit.

Answer rating: 100% (QA)

Answer Sales Mix Calculation The relative sales mix between the two products can be determined by ca... View the full answer