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% $364,800 109,440 $ 255,360 100% 30% 70% Fragrant 20% $ 152,000 121,600 $ 30,400 Product 100% 80% 20% Loonzain 32% $ 243,200 133,760 $ 109,440 100% 55% 45% Total 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. 100% $ 760,000 364,800 395,200 224,640 $ 170,560 Dollar sales to break-even = Fixed expenses + CM ratio = $224,640 0.52 = $432,000 As shown by these data, net operating income is budgeted at $170,560 for the month and the estimated break-even sales is $432,000. Assume that actual sales for the month total $760,000 as planned; however, actual sales by product are: White, $243,200; Fragrant, $304,000; and Loonzain, $212,800.

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% $364,800 109,440 $ 255,360 100% 30% 70% Fragrant 20% $ 152,000 121,600 $ 30,400 Product 100% 80% 20% Loonzain 32% $ 243,200 133,760 $ 109,440 100% 55% 45% Total 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. 100% $ 760,000 364,800 395,200 224,640 $ 170,560 Dollar sales to break-even = Fixed expenses + CM ratio = $224,640 0.52 = $432,000 As shown by these data, net operating income is budgeted at $170,560 for the month and the estimated break-even sales is $432,000. Assume that actual sales for the month total $760,000 as planned; however, actual sales by product are: White, $243,200; Fragrant, $304,000; and Loonzain, $212,800.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7.
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