**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 | 48% | 20% | 32% | 100% || Sales | $302,400 | $126,000 | $201,600 | $630,000 || Variable expenses | $90,720 | $100,800 | $110,880 | $302,400 || | 30% | 80% | 55% | 48% || Contribution margin| $211,680 | $25,200 | $90,720 | $327,600 || | 70% | 20% | 45% | 52% |- **Fixed expenses:** $232,440- **Net operating income:** $95,160Equation used:\[ \text{Dollar sales to break-even} = \frac{\text{Fixed expenses}}{\text{CM ratio}} = \frac{\$232,440}{0.52} = \$447,000 \]As shown by these data, net operating income is budgeted at $95,160 for the month and the estimated break-even sales is $447,000.Assume that actual sales for the month total $630,000 as planned. Actual sales by product are:- White: $201,600- Fragrant: $252,000- Loonzain: $176,400**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.

Cost volume profit analysis is the technique used by management for decision-making. The methods…

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: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even White 48 % $ 302,400 90,720 $ 211,680 Fixed expenses CM ratio 100 % 30 % 70 % $ $ 126,000 100,800 25, 200 Fragrant 20 % $232,440 0.52 Product 100 % 80 % 20 % = $447,000 Loonzain 32% $ 201,600 110,880 90,720 $ 100 % 55 % 45 % 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 % $ 630,000 302,400 327,600 232,440 $ 95,160 100 % 48 % 52% As shown by these data, net operating income is budgeted at $95,160 for the month and the estimated break-even sales is $447,000. Assume that actual sales for the month total $630,000 as planned. Actual sales by product are: White, $201,600; Fragrant, $252,000; and Loonzain, $176,400.

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: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even White 48 % $ 302,400 90,720 $ 211,680 Fixed expenses CM ratio 100 % 30 % 70 % $ $ 126,000 100,800 25, 200 Fragrant 20 % $232,440 0.52 Product 100 % 80 % 20 % = $447,000 Loonzain 32% $ 201,600 110,880 90,720 $ 100 % 55 % 45 % 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 % $ 630,000 302,400 327,600 232,440 $ 95,160 100 % 48 % 52% As shown by these data, net operating income is budgeted at $95,160 for the month and the estimated break-even sales is $447,000. Assume that actual sales for the month total $630,000 as planned. Actual sales by product are: White, $201,600; Fragrant, $252,000; and Loonzain, $176,400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 White 48% Fragrant 20% Loonzain 32% Total 100% Sales Variable expenses $ 369,600 110,880 100% 30% $ 154,000 123,200 100% 80% Contribution margin Fixed expenses Net operating income $ 258,720 70% $ 30,800 20% $ 246,400 135,520 $ 110,880 100% 55% 45% $ 770,000 369,600 100% 48% 400,400 52% 226,720 $ 173,680 Dollar sales to break-even - Fixed expenses / CM ratio = $226,720/0.52 = $436,000 As shown by these data, net operating income is budgeted at $173,680 for the month and the estimated break-even sales is $436,000. 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…
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 20% $ 150,000 108,000 $ 42,000 Fragrant 52% 100% $ 390,000 72% 28% $ 312,000 78,000 Required 1 Required 2 Product Loonzain 28% Complete this question by entering your answers in the tabs below. 100% $ 210,000 20% 84,000 80% $ 126,000 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. 100% 40% 60% Tota 100% 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.…
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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.…