Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company
ID: 2525443 • Letter: G
Question
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—Fragrant, White, and Loonzain. Budgeted sales by product and in total for the coming month are shown below:
Product
Fixed expenses
$226,200
As shown by these data, net operating income is budgeted at $153,400 for the month and break even sales at $435,000.
Assume that actual sales for the month total $730,000 as planned. Actual sales by product are: White, $233,600; Fragrant, $292,000; and Loonzain, $204,400.
Prepare a contribution format income statement for the month based on actual sales data.
Compute the break-even point in dollar sales for the month based on your actual data. (Round your final answer to the nearest whole dollar.)
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—Fragrant, White, and Loonzain. Budgeted sales by product and in total for the coming month are shown below:
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice Fragrant, White, and Loonzain. Budgeted sales by product and in total for the coming month are shown below Product ite 48% Total 100% 32% Percentage of total sales Sales 20% S350.400 100% s148,000 100% s233,600 100% S730.000 100% 128,480 55% 350,400 48% Varable expenses 105.120 30% 116.800 80% Contribution margin Foxed expenses S245.280 70% s 29,200 20% S105.120 45% 379.600 52% 228,200 Net operating income 5 153,400 Dollar sales to break evenFKed expenses. - $226 200 -$435,000 CM ratio As shown by these data, net operating income is budgeted at $153,400 for the month and break even sales at 5435,000 Assume that actual sales for the month total 5730,000 as planned. Actual sales by product are: White, 5233,600; Fragrant, $292,000, and Loonzain, 5204,400 Required 1. Prepare a contribution format income statement for the month based on actual sales data. Contribution Income Statement Product White Total Percentage of total 2. Compute the break-even point in dollar sales for the month based on your actual data. (Round your final answer to the nearest whole dollar) k-even point in sales dollarsExplanation / Answer
Product White Fragrant Loonzain Total Percentage of total sales 48% 20% 32% 100% Sales $ 233600 100% $ 292000 100% $ 204400 100% $ 730000 100% Variable expenses 105,120 45% 116,800 40% 128,480 63% 350,400 48% Contribution margin $ 128480 55% $ 175200 60% $ 75920 37% 379,600 52% Fixed expenses 226,200 Net operating income $ 153400 Dollar sales to break even = Fixed expenses = $226,200 = $435,000 CM ratio 0.52
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