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: 100 % 72 % White 20 % $ 150,000 108,000 $ 42,000 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Product Fragrant Loonzain 52 % 28 % $ 390,000 100 % $ 210,000 100 % 78,000 20 % 84,000 40 % $ 312,000 80 % $ 126,000 60 % 100 % 36 % Total 100 % $ 750,000 270,000 480,000 449,280 $ 30,720 28 % 64 % Dollar sales to break-even Fixed expenses CM ratio $ 449,280 0.64 $702,000 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000. Assume that actual sales for the month total $750,000 as planned. Actual sales by product are: White, $300,000; Fragrant, $180,000; and Loonzain, $270,000. 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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