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: Break-even point in sales dollars = Fixed expenses/CM ratio = $223, 600/0.52 = $430,000 Break-even point in unit sales: Total Fixed expenses/Weighted-average CM per unit = $223, 600/$130* = 1, 720 units *($168 times 0.$0) + ($40 times 0.2$) + ($144 times 0.2$) As shown by these data, operating income is budgeted at $36, 400 for the month, break-even sales dollars at $430,000, and break even unit sales at 1, 720. Assume that actual sales for the month total $504,000 (2, 100 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $223, 600. Actual sales by product are as follows: sinks, $126,000 (525 units); mirrors, $210,000 (1, 050 units); and vanities, $168,000 (525 units). Required. 1. Prepare a contribution format income statement for the month based on actual sales data. Present the income statement in the format shown above. 2. Compute the break-even point in sales dollars for the month, based on the actual data. 3. Calculate the break-even point in unit sales for the month, based on the actual data. 4. Considering the fact that the company exceeded its $500,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why both the operating results and the break-even point in sales dollars are different from what was budgeted