Problem 4-20 Sales Mix: Multi-Product Break-Even Analysis (L09] 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: Percentage 50% Units 1,000 500 500 2,000 Sinks Mirrors Vanities Total 25 25% 100% Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Product Sinks Mirrors Vanities Total 485 203 32% 100% $360,000 100.00% $150,000 100.00% $240,000 100.00% $750,000 100.00% 74,000 20.56% 62.000 41.335 86.000 35.83 192,150 25.62% $286,000 79.44% $ 88,000 58.67% $154,000 64,17% 552,850 74.38% $286.ee $ 176.00 $385.00 516,450 $ 41,400 Break-even point in sales dollars Fixed expenses Overall ratio $516,650 0.74 $694, 339.88 Break even point in unit sales: Total Fixed expenses $516,450 1.25 tireak even point in sales dollars Fixed expenses Overall CM ratio $516,450 0.74 5694,339.88 Break-even point in unit sales Total Fixed expenses $516,450 weighted average C per unit 5264.00 1,056.25 units *($286.00 -0.50) + ($176.00 0.25) + ($300.00 0.25) As shown by these data, operating income is budgeted at $41.400 for the month, break even soles dollars at $694.239.88, and break even unit sales at 1956.25. Assume that actual sales for the month total $756.000 (2300 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted. $516.450. Actual sales by product are as follows Sinks $189.000 (525 units) mitor. $315.000 (1.050 units and vanities, $252.000 (525 units) Required: 1. Prepare a contribution format Income statement for the month based on actual sales cata. (Round your answers to 2 decimal places) SMITHEN COMPANY Contribution Margin income Statement Product Mirrore Sinks Vanities Total Percentage of total Sales % 5 0.00 000 $ 0.00 0.00 $ 0.00 00015 0.00 0.00 Ignment Seved Percentage of total sales 196 % 96 s 0.00 0.00 S 0.00 0 00 % $ 000 0.00% 000 Operating income (loss) $ 0.00 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) Biven point in sales dotters 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.) Dok even point in sales
