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
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Chapter1: Financial Statements And Business Decisions
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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
488
$ 355,200
106,560
$ 248,640
100%
30%
708
Fragrant
20%
Required 1 Required 2
$ 148,000
118,400
$ 29,600
Product
100%
80%
20%
Complete this question by entering your answers in the tabs below.
Loonzain
328
$ 236,800
130,240
$ 106,560
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%
55%
458
Fixed expenses
Net operating income
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
$436,000.
Total
100%
$ 740,000
355,200
384,800
226,720
$ 158,080
Assume that actual sales for the month total $740,000 as planned; however, actual sales by product are: White, $236,800; Fragrant,
$296,000; and Loonzain, $207,200.
100%
48%
528
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 White 488 $ 355,200 106,560 $ 248,640 100% 30% 708 Fragrant 20% Required 1 Required 2 $ 148,000 118,400 $ 29,600 Product 100% 80% 20% Complete this question by entering your answers in the tabs below. Loonzain 328 $ 236,800 130,240 $ 106,560 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% 55% 458 Fixed expenses Net operating income 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 $436,000. Total 100% $ 740,000 355,200 384,800 226,720 $ 158,080 Assume that actual sales for the month total $740,000 as planned; however, actual sales by product are: White, $236,800; Fragrant, $296,000; and Loonzain, $207,200. 100% 48% 528
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