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  3. 2. franklin company produces two products. budgete

2. Franklin Company produces two products. Budgeted annual income statements for the two products are...

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Question

Accounting

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

Power Lite Total
Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted
Number Unit Amount Number Unit Amount Number Amount
Sales 100 @ $ 600 = $ 60,000 900 @ $ 560 = $ 504,000 1,000 $ 564,000
Variable cost 100 @ 320 = (32,000 ) 900 @ 430 = (387,000 ) 1,000 (419,000 )
Contribution margin 100 @ 280 = 28,000 900 @ 130 = 117,000 1,000 145,000
Fixed cost (11,000 ) (90,500 ) (101,500 )
Net income $ 17,000 $ 26,500 $ 43,500

Required:

Calculate the break-even point in total number of units.

Determine the number of units of each product Franklin must sell to break even.

A.

Calculate the break-even point in total number of units.
Break-even point units

B.

Determine the number of units of each product Franklin must sell to break even.
Required sales for Power units
Required sales for Lite units

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