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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: Percentage 50% Sinks Mirrors Vanities Units 1,000 500 500 25% es 25% Total 2,090 100% Product Sinks Percentage of total sales Sales Variable expenses 48% $388,320.00 77,664.00 Mirrors 20% $161,800 100% 129,440 80% Vanities 32% $258,880.00 155,328.00 Total 100% $899,000.00 362,432.00 100% 20% 100% 60% 100% 45% Contribution margin $310,656.00 80% $ 32,360 20% $103,552.00 48% 446,568.00 55% $ Contribution margin per unit 310.66 $ 64.72 $ 207.10 401,500.00 Fixed expenses $ 45,068.ee Operating income 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: Percentage 50% Sinks Mirrors Vanities Units 1,000 500 500 25% es 25% Total 2,090 100% Product Sinks Percentage of total sales Sales Variable expenses 48% $388,320.00 77,664.00 Mirrors 20% $161,800 100% 129,440 80% Vanities 32% $258,880.00 155,328.00 Total 100% $899,000.00 362,432.00 100% 20% 100% 60% 100% 45% Contribution margin $310,656.00 80% $ 32,360 20% $103,552.00 48% 446,568.00 55% $ Contribution margin per unit 310.66 $ 64.72 $ 207.10 401,500.00 Fixed expenses $ 45,068.ee Operating income
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