three productssinks mirrors and vanities Budgeted sales by p

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: Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells 300 25% 300 25% Mirrors 1,200 100% Total of total 45% 20% 35% 100% sales Sales $123,100.00 100% $143,600 100% $251,300.00 100% $718,000.00 100% variable expenses 80,775.00 25% 114,880 80% 125,650.00 50% 321,305.00 45% Cortrbution marpn $242.325.00 75% $ 28,720 20%$125,650.00 50% 396,695.00 55% S 403.88 $ 95.73 per unit $ 418.83 Fxed expenses Operating income 361,350.00 $ 35,345.00

Solution

SMITHEN COMPANY Contribution margin income statement Percentage of total Sinks Mirrors Vanities Total Sales $2,63,865 100% $2,68,053 100% $2,93,183 100% $8,25,101 100% Variable expenses $65,966 25% $2,14,442 80% $1,46,592 50% $4,27,000 52% Contribution margin $1,97,899 75% $53,611 20% $1,46,592 50% $3,98,101 48% Fixed expenses $3,61,350 Operating income $36,751