Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three...
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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: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 48 % $ 379,200 113,760 $ 265,440 Product Fragrant Loonzain 20 % 32 % 100 % $ 158,000 100 % $ 252,800 30 % 126,400 80 % 139,040 70% $ 31,600 20% $ 113,760 100 % 55 % 45 % Total 100 % $ 790,000 379,200 410,800 224, 120 $ 186,680 100 % 48 % 52 % Dollar sales to break-even Fixed expenses CM ratio $224,120 0.52 = $431,000 As shown by these data, net operating income is budgeted at $186,680 for the month and the estimated break-even sales is $431,000. 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 dollar sales for the month based on your actual data
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