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. Product Percentage of total sales Sales Variable expenses Contribution margin White 20% $ 150,000 108,000 $ 42,000 Fragrant 52% 100% $ 390,000 72% 78,000 28% $ 312,000 Loonzain 28% 100% $ 210,000 20 % 84,000 80% $ 126,000 Total 100% 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% $750,000 48% 270,000 60% 480,000 449,288 $ 30,720 100% 364 64% Fixed expenses Net operating income Dollar sales to break-even-Fixed expenses + CM ratio $449,280 +0.64-$702,000 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000. Assume actual sales for the month total $750,000 as planned, however, actual sales by product are White, $300,000; Fragrant, $180,000; and Loonzain, $270,000.

FINANCIAL ACCOUNTING
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Author:Libby
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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:
Product
Percentage of total sales
Sales
Variable expenses
Contribution margini
Fixed expenses
Net operating income
White
20%
$ 150,000
108,000
$ 42,000
100%
72%
28%
Fragrant
52%
$390,000
78,000
$ 312,000
Loonzain
28%
100% $210,000
20%
84,000
$126,000
80%
100%
40%
60%
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.
Total
100%
$ 750,000
270,000
480,000
449,288
$ 30,720
100%
36%
64%
Dollar sales to break-even - Fixed expenses + CM ratio $449,280+0.64-$702,000
As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000.
Assume actual sales for the month total $750,000 as planned; however, actual sales by product are White, $300,000; Fragrant,
$180,000; and Loonzain, $270,000.
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: Product Percentage of total sales Sales Variable expenses Contribution margini Fixed expenses Net operating income White 20% $ 150,000 108,000 $ 42,000 100% 72% 28% Fragrant 52% $390,000 78,000 $ 312,000 Loonzain 28% 100% $210,000 20% 84,000 $126,000 80% 100% 40% 60% 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. Total 100% $ 750,000 270,000 480,000 449,288 $ 30,720 100% 36% 64% Dollar sales to break-even - Fixed expenses + CM ratio $449,280+0.64-$702,000 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000. Assume actual sales for the month total $750,000 as planned; however, actual sales by product are White, $300,000; Fragrant, $180,000; and Loonzain, $270,000.
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