# Question

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.

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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