Problem $4-20$ Sales Mix; Multi$-$Product Break$-$Even Analysis $[$LO$9]$

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 $1,11050\%$

Mirrors $55525\%$

Vanities $55525\%$

Total $2,220100\%$

Product

Sinks Mirrors Vanities Total

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

Sales $ $266,400100\%$ $ $111,000100\%$ $ $177,600100\%$ $ $555,000100\%$

Variable expenses $79,92030\%88,80080\%97,68055\%266,40048\%$

Contribution margin $ $186,48070\%$ $ $22,20020\%$ $ $79,92045\%288,60052\%$

Contribution margin per unit $ $168$ $ $40$ $ $144$

Fixed expenses $226,460$

Operating income $ $62,140$

Break$-$even point in sales dollars $=$ Fixed expenses $=$ $$226,460=$ $$435,500$

Overall CM ratio $0\mathrm{.}52$

Break$-$even point in unit sales:

Total Fixed expenses $=$ $$226,460=1,742$ units

Weighted$-$average CM per unit

$$130*$

$*($$$168\backslash$times $0\mathrm{.}50)+($$$40\backslash$times $0\mathrm{.}25)+($$$144\backslash$times $0\mathrm{.}25)$

As shown by these data, operating income is budgeted at $$62,140$ for the month, break$-$even sales dollars at $$435,500,$ and break$-$even unit sales at $1,742.$

Assume that actual sales for the month total $$514,560(2,144$ units$),$ with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $$226,460.$ Actual sales by product are as follows: sinks$,$ $$128,640(536$ units$)$; mirrors, $$214,400(1,072$ units$)$; and vanities, $$171,520(536$ 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 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.$)$

$4.$ This part of the question is not part of your Connect assignment.