Gold Star Rice, Ltd., 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 White Loonzain Fragrant 20 % Total Percentage of total sales Sales 48 % $ 369,600 110,880 $ 258,720 32 % 100 % $ 154,000 123, 200 $ 246,400 135,520 $ 770,000 369,600 100 % 100 % 100 % 100 % Variable expenses 30 % 80 % 55 % 48 % Contribution margin 70 % 2$ 30,800 20 % $ 110,880 45 % 400,400 52 % Fixed expenses 232,960 Net operating income $ 167,440 Fixed expenses CM ratio $232,960 0.52 Dollar sales to break-even = $448,000 As shown by these data, net operating income is budgeted at $167,440 for the month and the estimated break-even sales is $448,000. Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600. 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.
Gold Star Rice, Ltd., 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 White Loonzain Fragrant 20 % Total Percentage of total sales Sales 48 % $ 369,600 110,880 $ 258,720 32 % 100 % $ 154,000 123, 200 $ 246,400 135,520 $ 770,000 369,600 100 % 100 % 100 % 100 % Variable expenses 30 % 80 % 55 % 48 % Contribution margin 70 % 2$ 30,800 20 % $ 110,880 45 % 400,400 52 % Fixed expenses 232,960 Net operating income $ 167,440 Fixed expenses CM ratio $232,960 0.52 Dollar sales to break-even = $448,000 As shown by these data, net operating income is budgeted at $167,440 for the month and the estimated break-even sales is $448,000. Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gold Star Rice, Ltd., 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
White
Fragrant
Loonzain
Total
Percentage of total sales
Sales
Variable expenses
48 %
20 %
32 %
100 %
$ 369,600
$ 154,000
$ 246,400
$ 770,000
369,600
100 %
100 %
100 %
100 %
110,880
30 %
123, 200
80 %
135,520
55 %
48 %
Contribution margin
$ 258,720
70 %
%24
30,800
20 %
$ 110,880
45 %
400,400
52 %
Fixed expenses
232,960
Net operating income
$ 167,440
Fixed expenses
$232,960
Dollar sales to break-even
= $448,000
CM ratio
0.52
As shown by these data, net operating income is budgeted at $167,44O for the month and the estimated break-even sales is $448,000.
Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400; Fragrant,
$308,000; and Loonzain, $215,600.
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, Ltd.
Contribution Income Statement
Product
White
Fragrant
Loonzain
Total
Percentage of total sales
%
%
%
%
%
%
%
0 %
0 % $
0 %
0 %
Required 1
Required 2
Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermediate
calculations. Round your answer to the nearest whole dollar amount.)
Break-even point in dollar sales
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