USINESS LA g David Dao BUSINESS LA. Clint Morris BUSINESS LA O Park Lane Park La

Question

USINESS LA g David Dao BUSINESS LA. Clint Morris BUSINESS LA O Park Lane Park Lane Te A home portion Test 2 Question 1 TDAL R sing TIDAL·Ha vey Lib ary Loonzain. sales by product and in total for the coming Asia. The company grows three varieties of rice- White, White 48 Fragrant 20 % Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income $321,600 100 % $134,000 100 $214,400 100 % $670,000 100 32 % 100 96,480 301 107,200 80 % 117,920 55 % 321,600 48% S225.120 701 s 26, 800 20, S 96,480 45% 348,400 52 int $120, 640 Dollar sales to break-Fixed expenses $227,760 = CH ratio = even 0.52--$438,000 As shown by these data, net operating income is budgeted at $120,640 for the month and the estimated break-even sales is $438,000. Assume that actual sales for the month total $670,000 as planned. Actual sales by product are: White, $214.400, Fragrant, $268,000 and Loonzain, $187.600 Required: 2 Compute the break-even point in dollar sales for the month based on your actual data epare a Complete this question by entering your a s in the tabs below

Explanation / Answer

Ans. 1 White Fragrant Loonzain Total Percentage of total sales 32% 40% 28% 100% Sales (actual) 214400 100% 268000 100% 187600 100% 670000 100% Less: Variable expenses 64320 30% 214400 80% 103180 55% 381900 57% Contribution margin 150080 70% 53600 20% 84420 45% 288100 43% Ans. 2 Dollar sales to break even   =   Fixed expenses / Contribution margin ratio 227760 / 43% 529674 (rounded off) *Variable expenses are calculated on the percentage of actual sales given in question. *The total percentage is calculated after the total of each variable expenses and contribution margin. Total Sales (Given) 670000 100% Total Variable exp. (64320+214400+103180) 381900 (381900 / 670000 * 100) = 57% Total contribution margin (150080+53600+84420) 288100 (288100 / 670000 * 100) = 43% *Calculation of Percentage of sales is as follows: Actula sales / Total sales *100

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