Problem 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: Units Percentage Sinks 1,000 50% Mirrors 500 25% Vanities 500 25% Total 2,000 100% Product Mirrors 20% Vanities 328 Total 100% 100.00% 26.39% $120,000 62,000 73.61% $ 58,000 $ 116.00 100.00% $192,000 51.67% 92,000 48.33% $100,000 $ 200.00 100.00% $600,000 47.92% 204,900 52.08% 395,100 100.00% 34.15% 65.85% Percentage of total sales Sales Variable expenses Contribution margin Sinks 48% $288,000 76,000 $212,000 Contribution margin per unit $ 212.00 Fixed expenses Operating income 356,700 $ 38,400 Fixed expenses Break-even point in sales dollars Overall CM ratio $356,700 0.66 = $541,685.65 Break-even point in unit sales: Total Fixed expenses Weighted-average CM per unit $356,700 $185.00* = 1,928.11 units *($212.00 x 0.50) + ($116.00 0.25) + ($200.00 0.25) As shown by these data, operating income is budgeted at $38,400 for the month, break-even sales dollars at $541,685.65, and break- even unit sales at 1,928.11.