4-20 Sales Mix; Multi-Product Break-Even Analysis [LO9] Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Units 1,000 500 Percentage 50% 25% 25% 100% 5-11 Vanities Total 500 2,000 Sinks Percentage of total sales Sales Variable expenses 48% $420,000 Contribution margin 70,000 $350,000 100.00% 16.67% 83.33 % Product Mirrors 20% $175,000 100.00% 78,000 44.57% $ 97,000 55.43% Vanities 32% Total 100% $280,000 100.00% $875,000 90,000 32.14% 223,350 $190,000 67.86% 651,650 100.00% 25.53% 74.47% Contribution margin per unit $ 350.00 $ 194.00 $ 380.00 Fixed expenses 607,750 Operating income $ 43,900 Break-even point in sales dollars Break-even point in unit sales: Total Fixed expenses Weighted-average CM per unit Fixed expenses Overall CM ratio $607,750 0.74 = $816,053.48 $607,750 $318.50* 1,908.16 units *($350.00 x 0.50) + ($194.00 x 0.25) + ($380.00 x 0.25) ($350.00 x 0.50) + ($194.00 x 0.25) + ($380.00 As shown by these data, operating income is budgeted at $43,900 for the month, break-even sales dollars at $816,053.48, and break- even unit sales at 1,908.16. Assume that actual sales for the month total $882,000 (2,100 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $607,750. Actual sales by product are as follows: sinks, $220,500 (525 units); mirrors, $367,500 (1,050 units); and vanities, $294,000 (525 units). Required: 1. Prepare a contribution format income statement for the month based on actual sales data. (Round your answers to 2 decimal places.) SMITHEN COMPANY Contribution Margin Income Statement Product Sinks Mirrors Vanities Total Percentage of total sales Sales $ 25.00% $ 41.67 % $ Variable expenses $ 220,500.00 36,750.74 183,749.26 100.00 % $ 367,500.00 16.67 % $ 163,794.75 83.33 % $ 203,705.25 $ 100.00 % $ 44.57 % $ 55.43 % $ 33.33% 100.00% 294,000.00 94,491.60 199,508.40 100.00% 32.14% 882,000.00 295,043.70 100.00% 25.53% 67.86 % 586,956.30 74.47 % Operating income (loss) $ 586,956.30 2. Compute the break-even point in sales dollars for the month, based on the actual data. (Round your percentage answers to nearest whole percent. Round other intermediate values and final answer to the nearest whole dollar.) Break-even point in sales dollars 3. Calculate the break-even point in unit sales for the month, based on the actual data. (Do not round your intermediate calculations. Round your final answer to the nearest whole number.) Break-even point in unit sales