Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, a 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% $ 355,200 106,560 $ 248,640 100% 30% 708 Fragrant 20% $ 148,000 118,400 $ 29,600 Product 100% 80% 20% Loonzain 32% $ 236,800 130,240 $ 106,560 100% 55% 458 Total 100% Required: - 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. $ 740,000 355,200 384,800 226,720 $ 158,080 Dollar sales to break-even = Fixed expenses / CM ratio = $226,720/0.52 = $436,000 As shown by these data, net operating income is budgeted at $158,080 for the month and the estimated break-even sales is 5436,000. 100 48 52 Assume that actual sales for the month total $740,000 as planned; however, actual sales by product are: White, $236,800; Fragrant, 5296,000; and Loonzain, $207,200.

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, a 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% $ 355,200 106,560 $ 248,640 100% 30% 708 Fragrant 20% $ 148,000 118,400 $ 29,600 Product 100% 80% 20% Loonzain 32% $ 236,800 130,240 $ 106,560 100% 55% 458 Total 100% Required: - 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. $ 740,000 355,200 384,800 226,720 $ 158,080 Dollar sales to break-even = Fixed expenses / CM ratio = $226,720/0.52 = $436,000 As shown by these data, net operating income is budgeted at $158,080 for the month and the estimated break-even sales is 5436,000. 100 48 52 Assume that actual sales for the month total $740,000 as planned; however, actual sales by product are: White, $236,800; Fragrant, 5296,000; and Loonzain, $207,200.

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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