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Lite Total Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Budgeted Per Unit @ $600 Number 360 @ 370 = 360 360 @ 230 = Sales Variable cost Contribution margin Fixed cost Net income Required A Required B Budgeted Budgeted Per Amount $ 216,000 (133,200) 82,800 (10,000) 72,800 $ 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. Required C Relative percentage for Power Relative percentage for Lite Number 840 840 840 Complete this question by entering your answers in the tabs below. Unit @ $580 @ 390 = @ 190 = d. Determine the number of units of each product Vernon 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 two products. % % Budgeted Budgeted Budgeted Amount $ 487,200 (327,600) 159, 600 (131,400) $ 28,200 Number Amount 1,200 $ 703,200 1,200 1,200 (460,800) 242,400 (141,400) Required D Required E Required F Based on budgeted sales, determine the relative sales mix between the two products. $ 101,000 Che

Lite Total Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Budgeted Per Unit @ $600 Number 360 @ 370 = 360 360 @ 230 = Sales Variable cost Contribution margin Fixed cost Net income Required A Required B Budgeted Budgeted Per Amount $ 216,000 (133,200) 82,800 (10,000) 72,800 $ 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. Required C Relative percentage for Power Relative percentage for Lite Number 840 840 840 Complete this question by entering your answers in the tabs below. Unit @ $580 @ 390 = @ 190 = d. Determine the number of units of each product Vernon 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 two products. % % Budgeted Budgeted Budgeted Amount $ 487,200 (327,600) 159, 600 (131,400) $ 28,200 Number Amount 1,200 $ 703,200 1,200 1,200 (460,800) 242,400 (141,400) Required D Required E Required F Based on budgeted sales, determine the relative sales mix between the two products. $ 101,000 Che

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Budgeted Per Amount 360 @ $600 = $ 216,000 STATIST 360 @ 370 = (133,200) 840 @ 390 = 360 @ 230 = 82,800 (10,000) $ 72,800 Sales Variable cost Contribution margin Fixed cost Net income Budgeted Per Number Unit Required A Required B Budgeted Budgeted Budgeted Amount 840 @ $580 = $ 487,200 1,200 $703,200 (460,800) 242,400 (141,400) $ 101,000 Relative percentage for Power Relative percentage for Lite Number Unit Complete this question by entering your answers in the tabs below. 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. % % Amount 840 @ 190 = 159, 600 1,200 Required C Required D Required E Required F d. Determine the number of units of each product Vernon 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 two products. Based on budgeted sales, determine the relative sales mix between the two products. (327,600) 1,200 (131,400) $ 28,200 Number Che
Transcribed Image Text:Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Budgeted Per Amount 360 @ $600 = $ 216,000 STATIST 360 @ 370 = (133,200) 840 @ 390 = 360 @ 230 = 82,800 (10,000) $ 72,800 Sales Variable cost Contribution margin Fixed cost Net income Budgeted Per Number Unit Required A Required B Budgeted Budgeted Budgeted Amount 840 @ $580 = $ 487,200 1,200 $703,200 (460,800) 242,400 (141,400) $ 101,000 Relative percentage for Power Relative percentage for Lite Number Unit Complete this question by entering your answers in the tabs below. 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. % % Amount 840 @ 190 = 159, 600 1,200 Required C Required D Required E Required F d. Determine the number of units of each product Vernon 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 two products. Based on budgeted sales, determine the relative sales mix between the two products. (327,600) 1,200 (131,400) $ 28,200 Number Che
Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Total Sales Variable cost Contribution margin Fixed cost Net income Lite Budgeted Per Budgeted Budgeted Per Number Unit Amount Number Unit 360 @ $600 = $ 216,000 840 @ $580 @ 370 840 390 @ 230 = 360 360 840 190 (133,200) 82,800 (10,000) $ 72,800 Complete this question by entering your answers in the tabs below. Required A Required B 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. Required C Required D Required E = Determine the weighted-average contribution margin per unit. Weighted-average contribution margin per unit < Required A Budgeted Amount $ 487,200 d. Determine the number of units of each product Vernon 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 two products. Required F (327,600) 159, 600 (131,400) Required C > $ 28,200 Budgeted Budgeted Number Amount 1,200 $703,200 1,200 (460,800) 1,200 242,400 (141,400) $ 101,000 Che
Transcribed Image Text:Vernon Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Total Sales Variable cost Contribution margin Fixed cost Net income Lite Budgeted Per Budgeted Budgeted Per Number Unit Amount Number Unit 360 @ $600 = $ 216,000 840 @ $580 @ 370 840 390 @ 230 = 360 360 840 190 (133,200) 82,800 (10,000) $ 72,800 Complete this question by entering your answers in the tabs below. Required A Required B 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. Required C Required D Required E = Determine the weighted-average contribution margin per unit. Weighted-average contribution margin per unit < Required A Budgeted Amount $ 487,200 d. Determine the number of units of each product Vernon 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 two products. Required F (327,600) 159, 600 (131,400) Required C > $ 28,200 Budgeted Budgeted Number Amount 1,200 $703,200 1,200 (460,800) 1,200 242,400 (141,400) $ 101,000 Che
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