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 500 25% Vanities 500 25% Total 2.000 100% Product Sinks Mirrors Vanities Total 48% 20% 32% 100% Percentage of total sales Sales $ 240,000 100% $100,000 100% $160,000 100% $500,000 100% Variable expenses 72.000 30% 80.000 80% 88.000 55% 240.000 48% Contribution margin $ 168,000 70% S 20,000 20% $ 72.000 45% 260.000 52% Contribution margin per unit $ 168 S 40 $ 144 Fixed expenses 223,600 Operating income $ 36,400 Break-even point in sales dollars = Fixed expenses Overall CM ratio $223,600 0.52 = $430,000 Break-even point in unit sales: Total fixed expenses $223,600 1,720 units Weighted average CM per unit $130 *($168 x 0.50) + ($40 x 0.25) + ($144 x 0.25) 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