Kidd Company produces two products. Budgeted annual income statements for the two products are provided as follows.
Question:
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 @ $ $ @ $ $ $
Variable cost @ @
Contribution margin @ @
Fixed cost
Net income $ $ $
Required:
Based on budgeted sales, determine the relative sales mix between the two products.
Determine the weightedaverage contribution margin per unit.
Calculate the breakeven point in total number of units.
Determine the number of units of each product Kidd must sell to break even.
Verify the breakeven point by completing the following income statement.
Determine the margin of safety based on the combined sales of the two products.
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds