Question 5 Nobel Company sells three products: X, Y, and Z. Budgeted sales by product and in total for the coming month are as follows: Total 100% Product Z Product Y Product X 20% 50% % of total sales 30% $750,000 100% 450,000 100% $150,000 100% $375,000 $225,000 100% Sales 60% 80% 82,500 55% 300,000 Variable expenses 30% 67,500 $157,500 70% $75,000 20% $67,500 45% $300,000 40% Contribution margin Fixed expense 196,000 $104.000 Operating income As shown by these data, operating Income is budgeted at $104,000 for the month. Assume that actual sales for the month total $750,000 as planned. Actual sales by product, however, are: X=$195,000 Y=$435,000 Z=$120,000 Required: a) Calculate the break-even sales for the coming month, based on budgeted data. (4 marks) b) Prepare a contribution income statement for the month based on actual sales data. Assume variable expenses are a percentage of sales and total fixed expenses are the same as budgeted. Present the income statement in the same format as shown above. (16 marks) c) Calculate the break-even sales for the month, based on actual data. (4 marks) d) Explain why the company did not meet the budgeted operating income or break-even sales even though it met its $500,000 sales budget. (5 marks)