Watt Company produces two products. Budgeted annual income statements for the two products are provided here:

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 Watt 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.

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Power Lite Total Budgeted Per Number Unit Budgeted Budgeted Per Budgeted Budgeted Budgeted Amount Number Amount Amount Number Unit 160 @$500-$80.000 640 @$450=$288,000 800 $368.000 160 320 51200 640 330(211200 800 (262.400) 105,600 (66,000) S 39,600 Sales Variable cost Contribution margin 160 Rxed cost Net income 18028,800 12,000) 640 12076,800 800 000) S22,800