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 Fixed expenses Net operating income White 48% $ 302,400. 90,720 $ 211,680 100% 30% 70% Fragrant 20% $ 126,000 100,800 $ 25,200 Product Loonzain 32% 100% $ 201,600 80% 110,880 20% $ 90,720. 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% $630,000 55% 302,400 45% 327,600 233,480 $ 94,120 100% 48% 524 Dollar sales to break-even = Fixed expenses/CM ratio= $233,480/0.52 - $449,000 As shown by these data, net operating income is budgeted at $94,120 for the month and the estimated break-even sales is $449,000. Assume that actual sales for the month total $630,000 as planned; however, actual sales by product are: White, $201,600; Fragrant, $252,000, and Loonzain, $176,400.
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 Fixed expenses Net operating income White 48% $ 302,400. 90,720 $ 211,680 100% 30% 70% Fragrant 20% $ 126,000 100,800 $ 25,200 Product Loonzain 32% 100% $ 201,600 80% 110,880 20% $ 90,720. 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% $630,000 55% 302,400 45% 327,600 233,480 $ 94,120 100% 48% 524 Dollar sales to break-even = Fixed expenses/CM ratio= $233,480/0.52 - $449,000 As shown by these data, net operating income is budgeted at $94,120 for the month and the estimated break-even sales is $449,000. Assume that actual sales for the month total $630,000 as planned; however, actual sales by product are: White, $201,600; Fragrant, $252,000, and Loonzain, $176,400.
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Chapter9: Profit Planning And Flexible Budgets
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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
48%
Required 11
$ 302,400
90,720
$ 211,680
Required 21
100%
30%
70%
Fragrant
20%
$ 126,000
100,800
$ 25,200
Product
Loonzain
329
100% $ 201,600
80% 110,880
20% $ 90,720
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.
Complete this question by entering your answers in the tabs below.
100%
55%
45%
Total
100%
Fixed expenses
Net operating income
Dollar sales to break-even - Fixed expenses/CM ratio= $233,480/0.52-$449,000
As shown by these data, net operating income is budgeted at $94,120 for the month and the estimated break-even sales is $449,000.
Assume that actual sales for the month total $630,000 as planned; however, actual sales by product are: White, $201,600; Fragrant,
$252,000, and Loonzain, $176,400.
$ 630,000
302,400
327,600
233,480
$ 94,120
100%
48%
52%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27c9ffc8-caf5-4a01-9236-94db3faf410c%2Fef21bbda-900b-43df-8b95-1f51dfe60b78%2Fk3lb9hi_processed.jpeg&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%
Required 11
$ 302,400
90,720
$ 211,680
Required 21
100%
30%
70%
Fragrant
20%
$ 126,000
100,800
$ 25,200
Product
Loonzain
329
100% $ 201,600
80% 110,880
20% $ 90,720
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.
Complete this question by entering your answers in the tabs below.
100%
55%
45%
Total
100%
Fixed expenses
Net operating income
Dollar sales to break-even - Fixed expenses/CM ratio= $233,480/0.52-$449,000
As shown by these data, net operating income is budgeted at $94,120 for the month and the estimated break-even sales is $449,000.
Assume that actual sales for the month total $630,000 as planned; however, actual sales by product are: White, $201,600; Fragrant,
$252,000, and Loonzain, $176,400.
$ 630,000
302,400
327,600
233,480
$ 94,120
100%
48%
52%
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