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

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Accounting

Gold Star Rice, Ltd., 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 $ 302,400 100 % $ 126,000 100 % $ 201,600 100 % $ 630,000 100 % Variable expenses 90,720 30 % 100,800 80 % 110,880 55 % 302,400 48 % Contribution margin $ 211,680 70 % $ 25,200 20 % $ 90,720 45 % 327,600 52 % Fixed expenses 228,800 Net operating income $ 98,800 Dollar sales to break-even = Fixed expenses = $228,800 = $440,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $98,800 for the month and the estimated break-even sales is $440,000. Assume that actual sales for the month total $630,000 as planned. Actual sales by product are: White, $201,600; Fragrant, $252,000; and Loonzain, $176,400. 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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