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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

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 800 50 %
Mirrors 400 25 %
Vanities 400 25 %
Total 1,600 100 %

Product
Sinks Mirrors Vanities Total
Percentage of total sales 47 % 20 % 33 % 100 %
Sales $ 327,132.00 100 % $ 139,800 100 % $ 232,068.00 100 % $ 699,000.00 100 %
Variable expenses 65,426.40 20 % 97,860 70 % 139,240.80 60 % 302,527.20 43 %
Contribution margin $ 261,705.60 80 % $ 41,940 30 % $ 92,827.20 40 % 396,472.80 57 %
Contribution margin per unit $ 327.13 $ 104.85 $ 232.07
Fixed expenses 359,670.00
Operating income $ 36,802.80

Break-even point in sales dollars = Fixed expenses = $359,670 = $631,000
Overall CM ratio 0.57

Break-even point in unit sales:

Total Fixed expenses $359,670
= = 1,451.48 units
Weighted-average CM per unit $247.80*
*($327.13 0.50) + ($104.85 0.25) + ($232.07 0.25)

Assume that actual sales for the month total $770,333 (1,800 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $359,670. Actual sales by product are as follows: sinks, $257,616 (630 units); mirrors, $251,640 (720 units); and vanities, $261,077 (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.)

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.)

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.)

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