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Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three...

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Accounting

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of riceWhite $,$ Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below:

Product

White Fragrant Loonzain Total

Percentage of total sales $48 % 20 % 32 % 100 %$

Sales $ $379, 200 100 %$ $ $158, 000 100 %$ $ $252, 800 100 %$ $ $790, 000 100 %$

Variable expenses $113, 760 30 % 126, 400 80 % 139, 040 55 % 379, 200 48 %$

Contribution margin $ $265, 440 70 %$ $ $31, 600 20 %$ $ $113, 760 45 % 410, 800 52 %$

Fixed expenses $229, 320$

Net operating income $ $181, 480$

Dollar sales to break $-$ even $=$ Fixed expenses $/$ CM ratio $=$ $ $229, 320 / 0.52 =$ $ $441, 000$

As shown by these data, net operating income is budgeted at $ $181, 480$ for the month and the estimated break $-$ even sales is $ $441, 000 .$

Assume that actual sales for the month total $ $790, 000$ as planned; however, 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 dollar sales for the month based on your actual data.

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