60.1K

Verified Solution

Link Copied!

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 % $ 288,000 86,400 $ 201,600 100% 30 % 70 % Fragrant 20% $ 120,000 96,000 5 24,000 Product Loonzain 32 % 100% $ 192,000 100 x 80% 105,600 55 % 20 $ 86,400 45 % Total 100 % $ 600,00 288,000 312,000 228, 289 $ 83,720 100 48 % 52 Dollar sales to break-even Fixed expenses CM ratio $228, 280 0.52 - 5439,000 As shown by these data, net operating income is budgeted at $83,720 for the month and the estimated break-even sales is $439,000. Assume that actual sales for the month total $600,000 as planned. Actual sales by product are: White, $192,000; Fragrant. $240,000, and Loonzain, $168,000 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. Required 1 Required 2 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Ltd. Contribution Income Statement Product Fragrant Loonzain Total White 9 Hide Course Menu Percentage of totamos Sales 9 % % % % % 9 0 % ol $ 0 S 01% 0 $ 0 0 01% Variable expenses Contribution margin Fixed expenses Net operating income S 0

Answer & Explanation Solved by verified expert

See Answer