Answered step by step
Verified Expert Solution
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
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 Sex 25% 25% Total 1,600 100% Product Percentage of total sales Sales Variable expenses Sinks 44% $181,630.00 36,326.00 Mirrors 25% $102,500 82,000 Vanities 31% $125,870.00 62,935.00 100% 20% Total 100% $410,000.00 181,261.00 100% BOX 100% 50% 4 203 50 $ 20,500 $ 62,935.00 56% 228,739.00 80% $145,304.00 Contribution margin $ 157.34 $ 181.6 $ 51.25 Contribution margin per unit 184,800.00 Fixed expenses 51.25 157.14 Fixed expenses Operating income 184,500.00 Fixed expenses Break-even point in sales dollars $184,800 $330,000 Overall CM ratio 8.56 Break-even point in unit sales: $142.96 Total Fixed expenses $184,800 - 1,292.65 units Weighted average CM per unit (5181.63 x 0.50) + (551.25 * 0,25) + (5157.34 * 8.25) Assume that actual sales for the month total $469,138 (1800 units), with the CM ratio and per unit amounts the same as budgeted Actual fixed expenses are the same as budgeted, $184,800. Actual sales by product are as follows: sinks. $143,034 (630 units), mirrors, $184,500 (720 units), and vanities. $141,604 (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.) SMITHEN COMPANY Contribution Margin Income Statement Product Mirrors Vanities % Sinks Total Percentage of total % % % % % % % $ 0 0% $ 0 0 % $ 0 ols 0 ol 1 $ 0 Operating income (loss) 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) Bakoven 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 I need to find out Format income statement for the month based on actual salles idata . compute the bueak even point in sales dollars for the month based on actual data Calculate the break even point in unit sales for the month based on the actual sales data
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started