Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income > White % 32 $ 204,800 White 48% $ 307,200 92,160 $ 215,040 |$ 204,800 100 % 30 % 70 % Fragrant 20% $ 100% 128,000 30% 102,400 70% Dollar sales to break-even - Fixed expenses + CM ratio = $226,720 0.52 = $436,000 As shown by these data, net operating income is budgeted at $106,080 for the month and the estimated break-even sales is $436,000. $ 25,600 Assume actual sales for the month total $640,000 as planned; however, actual sales by product are White, $204,800; Fragrant, $256,000; and Loonzain, $179,200. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 204,800 $ (204,800) Product Fragrant 20X % Contribution Income Statement Product 32% $ 100% 204,800 80% 112,640 20% 100 % 80 % 20 % Loonzain $ $ 92,160 0 Loonzain 48X % 100% 55% 307,200 640,000 45% 332,800 226,720 $ 106,080 100% $ 100 % 55 % 45 % Total 640,000 $ 100% 48% 52% Total 100 % $640,000 100 % % 100 % 640,000

Dollar sales to break-even = Fixed expenses CM ratio =$226,7200.52=$436,000 As shown by these data, net operating income is budgeted at $106,080 for the month and the estimated break-even sales is $436,000. Assume actual sales for the month total $640,000 as planned; however, actual sales by product are White, $204,800; Fragrant, \$256,000; and Loonzain, \$179,200. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data