Gold Star Rice. Ltd, of Thailand exports Thai rice throughout Asia. The company

Question

Gold Star Rice. Ltd, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below white 48% Percentage of total sales Sales Variable expenses 29% 32 % 100% $379,200 1e0 %$158,000 100 % s252,8 100 % s798,000 100 % 113,768 30 % 126,400 B0 % 139,048 55 % 379,200 48 % $265,448 70 %s31,600 20 % $113,768 45% 410, 8ae 52% Contribution margin Fixed expenses Net operating incone 227,240 $183,56e Dollar sales to break- even . Fixed expenses - S2275240·S437,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $183.560 for the month and the estimated break-even sales is $437.000. Assume that actual sales for the month total $790.000 as planned. Actual sales by product are: white. $252.800. Fragrant, $316.000. and Loonzain, $221.200 Required: 1 Prepare a contribution format income statement for the month based on the actual sales data 2 Compute the break-even point in doilar sales for the month based on your actual data. Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Ltd Contribution Income Statement Product Fragrant Total of total sales here to search

Explanation / Answer

1) White Fragrant loonzain total percentage of total sales 32% 40% 28% Sales 252,800 100% 316,000 100% 221,200 100% 790,000 100% Variable expense 75840 30% 252800 80% 121660 55% 450300 57% contribution margin 176960 70% 63200 20% 99540 45% 339700 43% Fixed expenses 227,240 net operating income 112,460 2) Break even point in dollar sales 528465 Fixed expense/cm ratio 227,240/43% 528465.1

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