Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells...
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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 and in total for the coming month are shown below based on planned unit sales as follows: Units Percentage Sinks 1,140 50% Mirrors Vanities 570 25% 570 25% Total 2,280 100% Percentage of total sales Sales Variable expenses Sinks 48% Product Mirrors 20% $273,600 100% $114,000 100% 82,080 Contribution margin $191,520 30% 70% 91,200 80% $ 22,800 20% Vanities 32% $182,400 100% 100,320 55% $ 82,080 45% Total 100% $570,000 100% 273,600 48% 296,400 52% Contribution margin per unit $ 168 $ 40 $ 144 Fixed expenses 227,240 Operating income $ 69,160 Break-even point in sales dollars Fixed expenses Overall CM ratio $227,240 0.52 $437,000 Break-even point in unit sales: Total Fixed expenses Weighted-average CM per unit $227,240 $130* = 1,748 units *($168 x 0.50) + ($40 x 0.25) + ($144 x 0.25) As shown by these data, operating income is budgeted at $69,160 for the month, break-even sales dollars at $437,000, and break- even unit sales at 1,748. Assume that actual sales for the month total $517,440 (2,156 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $227,240. Actual sales by product are as follows: sinks, $129,360 (539 units); mirrors, $215,600 (1,078 units); and vanities, $172,480 (539 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.) Sinks Percentage of total sales. % % % % Operating income (loss) SMITHEN COMPANY Contribution Margin Income Statement Product Mirrors % % % % Vanities % % % % Total % % % % 2. Compute the break-even point in sales dollars for the month, based on the actual data. (Round your final answer to the nearest whole dollar.) Break-even 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 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 Percentage Sinks 1,140 50% Mirrors Vanities 570 25% 570 25% Total 2,280 100% Percentage of total sales Sales Variable expenses Sinks 48% Product Mirrors 20% $273,600 100% $114,000 100% 82,080 Contribution margin $191,520 30% 70% 91,200 80% $ 22,800 20% Vanities 32% $182,400 100% 100,320 55% $ 82,080 45% Total 100% $570,000 100% 273,600 48% 296,400 52% Contribution margin per unit $ 168 $ 40 $ 144 Fixed expenses 227,240 Operating income $ 69,160 Break-even point in sales dollars Fixed expenses Overall CM ratio $227,240 0.52 $437,000 Break-even point in unit sales: Total Fixed expenses Weighted-average CM per unit $227,240 $130* = 1,748 units *($168 x 0.50) + ($40 x 0.25) + ($144 x 0.25) As shown by these data, operating income is budgeted at $69,160 for the month, break-even sales dollars at $437,000, and break- even unit sales at 1,748. Assume that actual sales for the month total $517,440 (2,156 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $227,240. Actual sales by product are as follows: sinks, $129,360 (539 units); mirrors, $215,600 (1,078 units); and vanities, $172,480 (539 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.) Sinks Percentage of total sales. % % % % Operating income (loss) SMITHEN COMPANY Contribution Margin Income Statement Product Mirrors % % % % Vanities % % % % Total % % % % 2. Compute the break-even point in sales dollars for the month, based on the actual data. (Round your final answer to the nearest whole dollar.) Break-even 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
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Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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