Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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: Sinks Mirrors Vanities Units 800 400 400 Percentage 500 258 258 Total 1,600 1008 es Product Percentage of total sales Sales Variable expenses Sinks 450 $301,032.00 60,206.40 1001 201 Mirrors 250 $166,500 1003 133,200 800 Vanities 308 $198,468.00 99,234.00 Total 1000 $666,000.00 292,640.40 100% 501 Contribution margin $240,825.60 800 $33,300 208 $ 99,234.00 508 373,359.60 Contribution margin per unit 301.03 $ 83.25 $ 248.09 Fixed expenses 338,800.00 Operating income $ 34,559.60 Check my work Fixed expenses $338,800 Break-even point in sales dollars $605,000 Overall cm ratio 0.56 Break-even point in unit sales: Total Fixed expenses $338,800 - 1,451.90 units Weighted-average CH per unit $233.35. *($301.03 * 0.50) + ($83.25 * 0.25) + ($248.09 * 0.25) Assume that actual sales for the month total $760,040 (1,800 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $338,800. Actual sales by product are as follows: sinks, $237,063 (630 units); mirrors, $299,700 (720 units); and vanities, $223,277 (450 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.) es SMITHEN COMPANY Contribution Margin Income Statement Product Mirrors Vanities 46% 23 % % % Total Sinks 31% Percentage of total 100% % % % % % 0 % % 0 % $ 0 $ 0 0 % $ 0 0 01% Operating income (oss) $ 0 2. Compute the break-even point in sales dollars for the month, based on the actual data. (Round your intermediate calculations to the nearest whole percent. Round your final answer to the nearest whole dollar.) Break-even point in sales dollars 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.) Break-even point in unit sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Consolations Of Economics How We Will All Benefit From The New World Order

Authors: Gerard Lyons

1st Edition

0571307795, 9780571307791

More Books

Students also viewed these Accounting questions

Question

4.1 Explain multiple uses of job analysis in HR decisions.

Answered: 1 week ago