| Use the sub navigation below to navigate within this series of questions. | ||||
|
|
|
Marlin Company, a wholesale distributor, has been operating for only a few months. The company sells three products%u2014sinks, mirrors, andvanities. Budgeted sales by product and in total for the coming month are shown below: |
|
Product |
||||||||||||
| Sinks | Mirrors | Vanities | Total | |||||||||
| Percentage of total sales | 48% | 20% | 32% | 100% | ||||||||
| Sales | $ | 240,000 | 100% | $ | 100,000 | 100% | $ | 160,000 | 100% | $ | 500,000 | 100% |
| Variable expenses | 72,000 | 30% | 80,000 | 80% | 88,000 | 55% |
240,000 |
48% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Contribution margin | $ | 168,000 | 70% | $ | 20,000 | 20% | $ | 72,000 | 45% | 260,000 | 52% | |
| Fixed expenses |
|
|
|
|
|
|
|
|
|
223,600 |
|
|
|
|
|
|||||||||||
| Net operating income | $ | 36,400 | ||||||||||
|
|
|
|||||||||||
|
|
||||||||||||
| Dollar sales to break even | = |
Fixed expenses |
= |
$223,600 |
= $430,000 |
| CM ratio | 0.52 |
|
As shown by these data, net operating income is budgeted at $36,400 for the month, and break even sales at $430,000. |
|
Assume that actual sales for the month total $500,000 as planned. Actual sales by product are: sinks, $160,000; mirrors, $200,000; and vanities, $140,000. |
| Required: | |
| 1. |
Prepare a contribution format income statement for the month based on actual sales data. (Input all amounts as positive values except losses which should be indicated by minus sign. Omit the “$” and “%” signs in your response.) |
|
Product |
||||||||
| Sinks | Mirrors | Vanities | Total | |||||
| Percentage of total sales | % | % | % | % | ||||
| (Click to select) Net operating income (loss) Contribution margin Fixed expenses Variable expenses Sales | $ | % | $ | % | $ | % | $ | % |
| (Click to select) Net operating income (loss) Fixed expenses Variable expenses Sales Contribution margin | % | % | % | % | ||||
|
|
|
|
|
|
|
|
|
|
| (Click to select) Sales Net operating income (loss) Fixed expenses Variable expenses Contribution margin | $ | % | $ | % | $ | % | % | |
| (Click to select) Net operating income (loss) Contribution margin Sales Variable expenses Fixed expenses |
|
|
|
|
|
|
|
|
|
|
||||||||
| (Click to select) Sales Fixed expenses Net operating income (loss) Contribution margin Variable expenses | $ | |||||||
|
|
||||||||
|
|
||||||||
| 2. |
Compute the break even point in sales dollars for the month, based on your actual data. (Omit the “$” sign in your response.) |
| Break even point in sales dollars | $ |