Help Save &Exit; Subm Check my and Loonzain. Budgeted sales by product and in to

Question

Help Save &Exit; Subm Check my and Loonzain. Budgeted sales by product and in total for the coming month are shown below 10 Fragran 312, 100 130,000100 208,00100 650,000 100 218,400 7026,000 2093,600 4S338,000 52 2.0004 Contribution margin Pixed expenses Net operating income Print References Dellar sales to break-even d pnes- 5230,80,000 As shown by these data, net operating income is budgeted at $107120 for the month and the estimated break -even sales is $444,000. Assume that actual sales for the month total $650000 as planned. Actual sales by product are: White, $208.000. Fragrant, $260,000 and Loonzain, $182,000 Required: 1 Prepare a contribution format income statement for the month based on the actual sales data 2. Compute the break-even point in dollar sales for the month based on your actual data. Complete this question by entering your answers in the tabs belovw Required Required 2 Prepare a contribution format income statement for the month based on the actual sales data. Prev 1 of 1 Next

Explanation / Answer

Req 1: Income Statement based on Actual Data WHITE FRAGRANT LOONZAIN TOTAL Sales revenue 208000 260000 182000 650000 Less: variable expense White(@30%) 62400 Fragrant(@80%) 208000 LoonZain(@55%) 100100 370500 Contribution 145600 260000 182000 279500 Less: Fixed expense 230880 Net Operating Income 48620 Req 2: Break even sales in $ Contribution earned $279,500 Total sales $650,000 CM Ratio = Total contribution/ Total sales *100                        ( 279500 /650000 *100 ) = 43% Break even point in $ = Total Fixedc ost / CM ratio ( 230880 /43 *100) = $ 536,930

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