Determining the break-even point and margin of safety for a company with multiple products Tottori


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Determining the break-even point and margin of safety for a company with multiple products Tottori 1 answer below » Determining the break-even point and margin of safety for a company with multiple products Tottori Company produces two products. Budgeted annual income statements for the two prod- ucts are provided here: View complete question » Budgeted Number Per Unit Budgeted Amount Budgeted Number Per Unit Budgeted Amount Determining the break-even point and margin of safety for a company with multiple products Tottori Company produces two products. Budgeted annual income statements for the two prod- ucts are provided here: Budgeted Number Per Unit Budgeted Amount Budgeted Number Per Unit Budgeted Amount Budgeted Number Budgeted Amount Sales 160 @ $500 5 $80,000 640 @ $450 5 $288,000 800 $368,000 Variable cost 160 @ 320 5 (51,200) 640 @ 330 5 (211,200) 800 (262,400) Contribution margin 160 @ 180 5 28,800 640 @ 120 5 76,800 800 105,600 Fixed cost (12,000) (54,000) (66,000) Net income $16,800 $ 22,800 $ 39,600 Required Based on budgeted sales, determine the relative sales mix between the two products. Determine the weighted-average contribution margin per unit. Calculate the break-even point in total number of units. Determine the number of units of each product Tottori must sell to break even. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. Determine the margin of safety based on the combined sales of the two products. View less » Sep 01 2015 01:58 PM

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