Gold Star Rice, Limited, 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 White 20% $ 150,000 108,000 $ 42,000 100% 72% 28% Fragrant 52% $ 390,000 78,000 $ 312,000 Product 100% 20% 80% Loonzain 28% $ 210,000 84,000 $ 126,000 100% 40% 60% 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. Total 100%. $750,000 270,000 480,000 449,280 $ 30,720 100% 36% 64% Fixed expenses Net operating income 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; however, actual sales by product are: White, $300,000; Fragrant, $180,000; and Loonzain, $270,000.
Gold Star Rice, Limited, 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 White 20% $ 150,000 108,000 $ 42,000 100% 72% 28% Fragrant 52% $ 390,000 78,000 $ 312,000 Product 100% 20% 80% Loonzain 28% $ 210,000 84,000 $ 126,000 100% 40% 60% 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. Total 100%. $750,000 270,000 480,000 449,280 $ 30,720 100% 36% 64% Fixed expenses Net operating income 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; however, actual sales by product are: White, $300,000; Fragrant, $180,000; and Loonzain, $270,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 5-21 (Static) Sales Mix; Multiproduct Break-Even Analysis [LO5-9]
Gold Star Rice, Limited, 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
20%
$ 150,000
108,000
$ 42,000
Required 1
100%
72%
28%
Required 2
Fragrant
52%
$ 390,000
78,000
$ 312,000
Complete this question by entering your answers in the tabs below.
Product
100%
20%
80%
$ 210,000
84,000
$ 126,000
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.
Loonzain
28%
4
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; however, actual sales by product are: White, $300,000; Fragrant,
$180,000; and Loonzain, $270,000.
entribution format income statement for the month based on the actual sales data.
Total
100%.
100% $750,000
40%
60%
270,000
480,000
449,280
$ 30,720
100%
36%
64%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d0860ec-d736-4b81-80ae-3bb12d338823%2F494e5cdb-d6eb-4c00-afba-825eae5553ac%2F1zg349u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 5-21 (Static) Sales Mix; Multiproduct Break-Even Analysis [LO5-9]
Gold Star Rice, Limited, 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
20%
$ 150,000
108,000
$ 42,000
Required 1
100%
72%
28%
Required 2
Fragrant
52%
$ 390,000
78,000
$ 312,000
Complete this question by entering your answers in the tabs below.
Product
100%
20%
80%
$ 210,000
84,000
$ 126,000
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.
Loonzain
28%
4
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; however, actual sales by product are: White, $300,000; Fragrant,
$180,000; and Loonzain, $270,000.
entribution format income statement for the month based on the actual sales data.
Total
100%.
100% $750,000
40%
60%
270,000
480,000
449,280
$ 30,720
100%
36%
64%
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