Gold Star Rice, Limited, of Thaland 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 Total Percentage of total sales Sales Varlahle expentes Contribution margin white 48X $ 312,000 91,600 $ 218, 400 Frageant 20k $ 130,000 104,000 $26,000 Loonzain 32% $200,000 114,400 $93,00 100% $ 650,000 312,000 100x 100% 100% 100 20k 330,000 Fixed expenses net operating Incone 224, 120 $ 11, 00 Dollar sales to break-even Foed expenses / CM ratio $224120 /052- $431,000 As shown by these data, net operating income is budgeted at $113.880 for the month and the estimated break even sales is $431,000. Assume that actual sales for the month total S650.000 as planned, however, actual sales by product are White, $208.000, Fragrant, $260,000, and Loonzain, $182.000. 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. Required 1 Reuired 2
Gold Star Rice, Limited, of Thaland 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 Total Percentage of total sales Sales Varlahle expentes Contribution margin white 48X $ 312,000 91,600 $ 218, 400 Frageant 20k $ 130,000 104,000 $26,000 Loonzain 32% $200,000 114,400 $93,00 100% $ 650,000 312,000 100x 100% 100% 100 20k 330,000 Fixed expenses net operating Incone 224, 120 $ 11, 00 Dollar sales to break-even Foed expenses / CM ratio $224120 /052- $431,000 As shown by these data, net operating income is budgeted at $113.880 for the month and the estimated break even sales is $431,000. Assume that actual sales for the month total S650.000 as planned, however, actual sales by product are White, $208.000, Fragrant, $260,000, and Loonzain, $182.000. 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. Required 1 Reuired 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Total
hite
48X
$ 312,000
93,00
Fragrant
20k
Loonzaln
Percentage of total sales
Sales
Varlable expenses
Contribution nargin
100
$ 650, 000
312, e00
338, 000
224, 120
$ 113,00
$ 130,000
104,000
$ 26,000
32%
$ 200,000
114,400
100%
100x
48%
100x
100
55%
$218,400
20%
$ 93,600
45X
52%
Fixed expenses
Net operating incone
Dollar sales to break-even = Fixed expenses / CM ratio $224,120 / 052- $431,000
As shown by these data, net operating income is budgeted at $113,880 for the month and the estimated break-even sales is $431,000,
Assume that actual sales for the month total S650.000 as planned; however, actual sales by product are: White, $208.000, Fragrant.
$260,000, and Loonzain, $182.000.
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.
Required 1
Required 2
Prepare a contribution format income statement for the month based on the actual sales data.
Gold Star Rice, Limited
Contribution Income Statement
Prodoct
White
Fragrant
Loonrain
Parcentage f tatal sales
Total
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