Dollar sales to break-even 5 Fixed expenses _______ ______ CM ratio 5 $223,600 ________ 0.52 5 $430,000 As shown by these data, net operating income is budgeted at $36,400 for the month, and break-even sales at $430,000. Assume that actual sales for the month total $500,000 as planned. Actual sales by product are: sinks, $160,000; mirrors, $200,000; and vanities, $140,000. Required: 1. Prepare a contribution format income statement for the month based on actual sales data. Present the income statement in the format shown above. 2. Compute the break-even point in sales dollars for the month, based on your actual data. 3. Considering the fact that the company met its $500,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why both the operating results and the break-even point in sales dollars are different from what was budgeted. Please show all work so i know how to do it - the answer for 1 is $8600 loss please answer all three parts.

Percentage of total sales . . . . . . . . . . . 48% 20% 32% 100%

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . $240,000 100% $100,000 100% $160,000 100% $500,000 100%

Variable expenses . . . . . . . . . . . . . . . . 72,000 30% 80,000 80% 88,000 55% 240,000 48%

Contribution margin . . . . . . . . . . . . . . . $168,000 70% $ 20,000 20% $ 72,000 45% 260,000 52%

Fixed expenses . . . . . . . . . . . . . . . . . . 223,600

Net operating income . . . . . . . . . . . . . $ 36,400