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 i Required 1 Required 2 Percentage of total sales Sales Variable expenses Contribution margin White 48% Fixed expenses Net operating income $ 331,200 99,360 $ 231,840 Complete this question by entering your answers in the tabs below. $ White 32% 100% 30% 701 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. 0 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Fragrant 20% $ 138,000 110,400 $ 27,600 Dollar sales to break-even Fixed expenses/CM ratio $225,680/0.52 $434,000 As shown by these data, net operating income is budgeted at $133,120 for the month and the estimated break-even sales is $434,000. Assume that actual sales for the month total $690,000 as planned; however, actual sales by product are: White, $220,800; Fragrant, $276,000; and Loonzain, $193,200. 100 % % 100 % $ Fragrant 40% 0 Product Product % % 0% S 100% $ 220,000 80% 121,440 201 $ 99,360 < Required 1 Loonzain 32% Loonzain 28 % 0 % % 0% 100% 55% 45% Required 2 > $ www $ 690,000 331,200 358,800 225,680 $ 133,120 Total 100 % Total 100% 0 0 % % 100% 48% 52% 0%
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 i Required 1 Required 2 Percentage of total sales Sales Variable expenses Contribution margin White 48% Fixed expenses Net operating income $ 331,200 99,360 $ 231,840 Complete this question by entering your answers in the tabs below. $ White 32% 100% 30% 701 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. 0 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Fragrant 20% $ 138,000 110,400 $ 27,600 Dollar sales to break-even Fixed expenses/CM ratio $225,680/0.52 $434,000 As shown by these data, net operating income is budgeted at $133,120 for the month and the estimated break-even sales is $434,000. Assume that actual sales for the month total $690,000 as planned; however, actual sales by product are: White, $220,800; Fragrant, $276,000; and Loonzain, $193,200. 100 % % 100 % $ Fragrant 40% 0 Product Product % % 0% S 100% $ 220,000 80% 121,440 201 $ 99,360 < Required 1 Loonzain 32% Loonzain 28 % 0 % % 0% 100% 55% 45% Required 2 > $ www $ 690,000 331,200 358,800 225,680 $ 133,120 Total 100 % Total 100% 0 0 % % 100% 48% 52% 0%
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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.
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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:
Percentage of total sales
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income i
Required 1 Required 2
Percentage of total sales
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
White
48%
$
$ 331,200
99,360
$ 231,840
White
32%
0
100%
30%
701
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.
Prepare a contribution format income statement for the month based on the actual sales data.
Gold Star Rice, Limited
Contribution Income Statement
100 %
%
100 % $
Fragrant
20%
$ 138,000
110,400
$ 27,600
Dollar sales to break-even = Fixed expenses/CM ratio = $225,680/0.52= $434,000
As shown by these data, net operating income is budgeted at $133,120 for the month and the estimated break-even sales is $434,000.
Assume that actual sales for the month total $690,000 as planned; however, actual sales by product are: White, $220,800; Fragrant,
$276,000; and Loonzain, $193,200.
Fragrant
40 %
0
Product
Product
100%
80%
201
%
%
0% S
< Required 1
$ 220,800
121,440
$ 99,360
Loonzain
32%
Loonzain
28 %
0
%
%
0%
100%
55%
45%
Required 2 >
$
www
$ 690,000
331,200
358,800
225,680
$ 133,120
Total
100 %
Total
100%
0
0
%
%
100%
48%
52%
0%
Transcribed Image Text: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
Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermediate
calculations. Round your answer to the nearest whole dollar amount.)
Break-even point in dollar sales
< Required 1
Required 2 >
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