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 Vanities 500 25% 500 25% Total 2,000 100% Percentage of total sales Sales Variable expenses Contribution margin Sinks 48% Product Mirrors 20% Vanities 32% $252,000 78,000 $174,000 100.00% $105,000 30.95% 74,000 69.05% $ 31,000 $ 62.00 100.00% $168,000 70.48% 88,000 29.52% $ 80,000 $ 160.00 Total 100% 100.00% $525,000 52.38% 229,650 47.62% 295,350 100.00% 43.74% 56.26% Contribution margin per unit $ 174.00 Fixed expenses Operating income 258,450 $ 36,900 Break-even point in sales dollars Fixed expenses Overall CM ratio $258,450 0.56 = $459,408.33 Break-even point in unit sales: Total Fixed expenses Weighted-average CM per unit $258,450 $142.50* = 1,813.68 units *($174.00 0.50) + ($62.00 0.25) + ($160.00 0.25) As shown by these data, operating income is budgeted at $36,900 for the month, break-even sales dollars at $459,408.33, and break- even unit sales at 1,813.68.