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 $1,14050\%$

Mirrors $57025\%$

Vanities $57025\%$

Total $2,280100\%$

Product

Sinks Mirrors Vanities Total

Percentage of total sales $48\%20\%32\%100\%$

Sales $ $273,600100\%$ $ $114,000100\%$ $ $182,400100\%$ $ $570,000100\%$

Variable expenses $82,08030\%91,20080\%100,32055\%273,60048\%$

Contribution margin $ $191,52070\%$ $ $22,80020\%$ $ $82,08045\%296,40052\%$

Contribution margin per unit $ $168$ $ $40$ $ $144$

Fixed expenses $227,240$

Operating income $ $69,160$

Break$-$even point in sales dollars $=$ Fixed expenses $=$ $$227,240=$ $$437,000$

Overall CM ratio $0\mathrm{.}52$

Break$-$even point in unit sales:

Total Fixed expenses $=$ $$227,240=1,748$ units

Weighted$-$average CM per unit

$$130*$

$*($$$168\backslash$times $0\mathrm{.}50)+($$$40\backslash$times $0\mathrm{.}25)+($$$144\backslash$times $0\mathrm{.}25)$

As shown by these data, operating income is budgeted at $$69,160$ for the month, break$-$even sales dollars at $$437,000,$ and break$-$even unit sales at $1,748.$

Assume that actual sales for the month total $$517,440(2,156$ units$),$ with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $$227,240.$ Actual sales by product are as follows: sinks$,$ $$129,360(539$ units$)$; mirrors, $$215,600(1,078$ units$)$; and vanities, $$172,480(539$ units$).$

Required:

$1.$ Prepare a contribution format income statement for the month based on actual sales data. $($Round your percentage answers to the nearest whole number.$)$

Percentage of total sales

Sales

Variable expenses

Contribution margin

Fixed expenses

Operating income $($loss$)$

$

$

$

Sinks

$25$

$129,360$ V

$38,808$ V

$90,552$

$100$

$70$

$\%$

$\%$

$\%$

$

$

$

Answer is complete and correct.

SMITHEN COMPANY

Contribution Margin Income Statement

Product

Mirrors

Vanities

$42$

$215,600$ V

$172,480$ V

$43,120$

$\%$

$100$

$\%$

$\%$

$20$

$\%$

$

$

$

$33$ V

$172,480$ V

$94,864$ V

$77,616$

$\%$

$100$ V

$55$

$45$

$\%$

$\%$

$\%$

$2.$ Compute the break$-$even point in sales dollars for the month, based on the actual data. $($Round your final answer to the nearest whole dollar.$)$

$$ Answer is complete and correct.

Break$-$even point in sales dollars

$

$554,243$

Assessment Tool iFrame

$

$

nol yucotot

Total

$100$

$\%$

$517,440$ V

$306,152$ V

$211,288$

$227,240$

$(15,952)$

$100$ V

$59$ V

$3.$ Calculate the break$-$even point in unit sales for the month, based on the actual data. $($Round your final answer to the nearest whole number.$)$