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%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
help solve all requirements
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
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
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education