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: Product Percentage of total sales Sales White 48% Fragrant 20% Loonzain 32% Total 100% Variable expenses $ 336,000 100,800 100% 30% $ 140,000 112,000 100% 80% $ 224,000 123,200 100% 55% $ 700,000 100% 336,000 48% Contribution margin Fixed expenses Net operating income $ 235,200 70% $ 28,000 20% $ 100,800 45% 364,000 52% 231,400 $ 132,600 Dollar sales to break-even = Fixed expenses / CM ratio = $231,400 / 0.52 = $445,000 As shown by these data, net operating income is budgeted at $132,600 for the month and the estimated break-even sales is $445,000. Assume that actual sales for the month total $700,000 as planned; however, actual sales by product are: White, $224,000; Fragrant, $280,000; and Loonzain, $196,000. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Product White Fragrant Loonzain Total Percentage of total sales % % % % % % % % % % % % $ 0 0% $ 0 0 % $ 0 0% 0 0% Required 1 Required 2 $ 0 Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermedi calculations. Round your answer to the nearest whole dollar amount.) Break-even point in dollar sales < Required 1 Required 2 >
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: Product Percentage of total sales Sales White 48% Fragrant 20% Loonzain 32% Total 100% Variable expenses $ 336,000 100,800 100% 30% $ 140,000 112,000 100% 80% $ 224,000 123,200 100% 55% $ 700,000 100% 336,000 48% Contribution margin Fixed expenses Net operating income $ 235,200 70% $ 28,000 20% $ 100,800 45% 364,000 52% 231,400 $ 132,600 Dollar sales to break-even = Fixed expenses / CM ratio = $231,400 / 0.52 = $445,000 As shown by these data, net operating income is budgeted at $132,600 for the month and the estimated break-even sales is $445,000. Assume that actual sales for the month total $700,000 as planned; however, actual sales by product are: White, $224,000; Fragrant, $280,000; and Loonzain, $196,000. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Product White Fragrant Loonzain Total Percentage of total sales % % % % % % % % % % % % $ 0 0% $ 0 0 % $ 0 0% 0 0% Required 1 Required 2 $ 0 Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermedi calculations. Round your answer to the nearest whole dollar amount.) Break-even point in dollar sales < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text: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:
Product
Percentage of total sales
Sales
White
48%
Fragrant
20%
Loonzain
32%
Total
100%
Variable expenses
$ 336,000
100,800
100%
30%
$ 140,000
112,000
100%
80%
$ 224,000
123,200
100%
55%
$ 700,000
100%
336,000
48%
Contribution margin
Fixed expenses
Net operating income
$ 235,200
70%
$ 28,000
20%
$ 100,800
45%
364,000
52%
231,400
$ 132,600
Dollar sales to break-even = Fixed expenses / CM ratio = $231,400 / 0.52 = $445,000
As shown by these data, net operating income is budgeted at $132,600 for the month and the estimated break-even sales is
$445,000.
Assume that actual sales for the month total $700,000 as planned; however, actual sales by product are: White, $224,000; Fragrant,
$280,000; and Loonzain, $196,000.
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare a contribution format income statement for the month based on the actual sales data.
Gold Star Rice, Limited
Contribution Income Statement
Product
White
Fragrant
Loonzain
Total
Percentage of total sales
%
%
%
%
%
%
%
%
%
%
%
%
$
0
0% $
0
0 % $
0
0%
0
0%
Required 1
Required 2
$
0
<Required 1
Required 2 >
Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermedi
calculations. Round your answer to the nearest whole dollar amount.)
Break-even point in dollar sales
< Required 1
Required 2 >
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