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 48% $ 355,200 106,560 $ 248,640 100% 30% 70% Product Fragrant 20% $ 148,000 118,400 $ 29,600 100% 80% 20% Loonzain 32% $ 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% 45% Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses/CM ratio = $230,880/0.52 = $444,000 As shown by these data, net operating income is budgeted at $153,920 for the month and the estimated break-even sales is $444,000. Total 100% $ 740,000 355, 200 $ 384,800 230,880 $ 153,920 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% 52%
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 48% $ 355,200 106,560 $ 248,640 100% 30% 70% Product Fragrant 20% $ 148,000 118,400 $ 29,600 100% 80% 20% Loonzain 32% $ 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% 45% Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses/CM ratio = $230,880/0.52 = $444,000 As shown by these data, net operating income is budgeted at $153,920 for the month and the estimated break-even sales is $444,000. Total 100% $ 740,000 355, 200 $ 384,800 230,880 $ 153,920 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% 52%
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...
Related questions
Question
help solve all requirements
![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
48%
$ 355,200
106,560
$ 248,640
100%
30%
70%
Product
Fragrant
20%
$ 148,000
118,400
$ 29,600
100%
80%
20%
Loonzain
32%
$ 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%
45%
Fixed expenses
Net operating income
Dollar sales to break-even = Fixed expenses/CM ratio = $230,880/0.52 = $444,000
As shown by these data, net operating income is budgeted at $153,920 for the month and the estimated break-even sales is
$444,000.
Total
100%
$ 740,000
355,200
$384,800
230, 880
$ 153,920
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%
52%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd5ca586-ef73-47ac-9620-7bccb84273ae%2F7629b63b-541d-4f34-825d-89b3998a946c%2F6tztjvh_processed.png&w=3840&q=75)
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
48%
$ 355,200
106,560
$ 248,640
100%
30%
70%
Product
Fragrant
20%
$ 148,000
118,400
$ 29,600
100%
80%
20%
Loonzain
32%
$ 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%
45%
Fixed expenses
Net operating income
Dollar sales to break-even = Fixed expenses/CM ratio = $230,880/0.52 = $444,000
As shown by these data, net operating income is budgeted at $153,920 for the month and the estimated break-even sales is
$444,000.
Total
100%
$ 740,000
355,200
$384,800
230, 880
$ 153,920
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%
52%
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College