Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three productssinks, 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

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

Sales $ 456,000 100.00 % $ 190,000 100.00 % $ 304,000 100.00 % $ 950,000 100.00 %

Variable expenses 60,000 13.16 % 66,000 34.74 % 94,000 30.92 % 194,400 20.46 %

Contribution margin $ 396,000 86.84 % $ 124,000 65.26 % $ 210,000 69.08 % 755,600 79.54 %

Contribution margin per unit $ 396.00 $ 248.00 $ 420.00

Fixed expenses 710,200

Operating income $ 45,400

Break-even point in sales dollars = Fixed expenses = $710,200 = $892,919.53

Overall CM ratio 0.80

Break-even point in unit sales:

Total Fixed expenses = $710,200 = 1,945.75 units

Weighted-average CM per unit

$365.00*

*($396.00 0.50) + ($248.00 0.25) + ($420.00 0.25)

As shown by these data, operating income is budgeted at $45,400 for the month, break-even sales dollars at $892,919.53, and break-even unit sales at 1,945.75.

Assume that actual sales for the month total $957,600 (2,100 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $710,200. Actual sales by product are as follows: sinks, $239,400 (525 units); mirrors, $399,000 (1,050 units); and vanities, $319,200 (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 break-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.)

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 1,000 SON Sinks Mirrors Vanities Total Percentate 50% 25% 25% 100% 500 2,000 32 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Product Sinks Mirrors Vanities Total 48% 20x 100% $456,000 100.00% $190,000 100.00 $364,000 100.00% $950,000 100.00% 60,000 13.16% 66,000 34.74% 94,000 30.92% 194,400 20.46% $396,000 86.84% $124,000 65.26% $210,000 69.68% 755,600 79.54% $ 396.00 $ 248.00 $ 420.00 710,200 $ 45,400 Fixed expenses Overall CM ratio $710,200 0.80 = $892,919.53 Break-even point in sales dollars Break-even point in unit sales: Total Fixed expenses Weighted average CM per unit $710,200 $365.00 = 1,945.75 units *($39.00 .se). ($268.00 0.25). (5420.00 0.25) As shown by these data, operating income is budgeted at $45,400 for the month, break even sales dollars at $892,91953, and break- even unit sales at 1.945.75 Assume that actual sales for the month total $957,600 (2,100 units), with the CM ratio and per unit amounts the same as budgeted Actual fixed expenses are the same as budgeted, $710.200. Actual sales by product are as follows: Sinks. $239,400 (525 units); mirrors, $399,000 (1.050 units), and vanities. $319,200 (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.) SMITHEN COMPANY Contribution Margin Income Statement Product Mirrors Sinks Vanities Total Porcentage of total sales $ ODO 000 000 0005 0.00% 0.001% 0.00 000 $ 0.00 Operating income (loss) 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.) Brankoven point in sales dollats 3. Calculate the break-even point in unit sales for the month, based on the actual data. (Do not round your intermediate calculation Round your final answer to the nearest whole number.) Break even point in unt sales