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 productsmirrors, and vanities. Budgeted sales by product and

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 productsmirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned un follows: Break-evenpointinsatesdollars=OveratlCMratioFixedexpenses=0.65$338,650=$5517,125.88TotalFixedexpensesWeighted-averageCMperunitTotalFixedexpenses=$176.50$338,650=1,918.70units.($198.000.56)+($102.000.25)+($208.000.25) Break-even point in unit sales: Weighted-averageCMperunitTotalFixedexpenses=$176.50$338,650=1,918.70units($198.000.56)+($102.000.25)+($208.000.25) As shown by these data, operating income is budgeted at $37,900 for the month, break-even sales dollars at $517,125.88, and b even unit sales at 1.918 .70 . Assume that actual sales for the month total $579,600 ( 2,100 units), with the CM ratio and per unit amounts the same as budgete Actual fixed expenses are the same as budgeted, $338,650. Actual sales by product are as follows: sinks, $144,900 ( 525 units): mirrors, $241,500 (1,050 units): and vanities, $193,200 ( 525 units). Required: 1. Prepare a contribution format income statement for the month based on actual sales data, (Round your answers to 2 decimal places.) 2. Compute the break-even point in sales dollars for the month, based on the actual data. (Round your percentage answers to nearest whole percent. Round other intermediate values and final answer to the nearest whole dollar.) 3. Calculate the breok-even point in unit sales for the month, based on the actual data. (Do not round your intermediate calculations. Round your final answer to the nearest whole number.)

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

Financial Accounting A Practical Introduction

Authors: Ilias Basioudis

1st Edition

0273714295, 978-0273714293

More Books

Students also viewed these Accounting questions

Question

What is time-based competition?

Answered: 1 week ago

Question

=+How would you change the tone of voice?

Answered: 1 week ago