French Meditrainian Welsh Total Percent 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 Operating income $36,400 Breakeven point in sales dollars = Fixed expenses = $223.600 = $430,000 CM ratio 0.52 As shown by this data, operating income is budgeted at $36,400 for the month and breakeven sales are $430,000. Assume actual sales for the month total $500,000 as planned. Actual sales by divisions are $French - $160,000; Meditrainian - $200,000 and Welsh - $140,000. Prepare a contribution Income statement for actual sales based on the above data and explain why the operating income is not as budget