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. **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.**- **Option Tabs (Interactive Section):** - **Required 1** - **Required 2****Under "Required 2" Tab:** Compute the break-even point in dollar sales for the month based on your actual data. *(Round your answer to the nearest whole dollar amount.)*- **Answer Box:** - Break-even point in dollar sales: [Text Input Field]**Navigation Button:**- **Required 1 [Button]**- **Required 2 [Button] (disabled)***(The 'Required 1' button allows you to navigate back to the first requirement, whereas the 'Required 2' button is currently disabled.)*---This interface is designed to help students understand and compute essential financial metrics, such as the break-even point in sales, by using interactive tabs. **Gold Star Rice, Ltd. - Thailand Rice Exporter****Overview:**Gold Star Rice, Ltd. of Thailand exports Thai rice throughout Asia and grows three varieties of rice—White, Fragrant, and Loonzain. The following table displays budgeted sales by product and in total for the upcoming month.**Budgeted Sales Data:**| Product | White | Fragrant | Loonzain | Total ||---------|--------|----------|----------|---------|| Percentage of total sales | 48% | 20% | 32% | 100% || Sales | $331,200 | $138,000 | $220,800 | $690,000 || Variable expenses | $99,360 | $110,400 | $121,440 | $331,200 || Contribution margin | $231,840 | $27,600 | $99,360 | $358,800 || Fixed expenses | $230,880 | | | $230,880 || Net operating income | | | | $127,920 |**Calculation:**Dollar sales to break-even = $\frac{\text{Fixed expenses}}{\text{Contribution Margin ratio}}$ = $\frac{\$230,880}{0.52} = \$444,000$**Net Operating Income:**Based on the provided data, the net operating income for the month is budgeted at $127,920, and the estimated break-even sales amount to $444,000.**Scenario:**Assume that actual sales for the month total $690,000 as planned. The actual sales by product are:- White: $220,800- Fragrant: $276,000- Loonzain: $193,200**Required Tasks:**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 the actual data.**Contribution Format Income Statement:**You are required to complete the pre-formatted table below by entering the actual sales data to prepare the contribution format income statement.| Gold Star Rice, Ltd. | White | Fragrant | Loonzain | Total ||-----------------------------------------------|-------|----------|----------|---------|| Percentage of total sales | %

Understanding the break-even point helps business entities to assess the level of sales or…

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 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income. Dollar sales to break-even = White 48 % $ 331,200 99,360 $ 231,840 Fixed expenses CM ratio Fragrant 20% $230,880 0.52 100 % $ 138,000 100% $ 220,800 110,400 30% 70% $ 27,600 80% 121,440 20% $ 99,360 Loonzain 32% = $444,000 100 % 55 % 45% Total 100 % $ 690,000 331,200 358,800 230,880 $ 127,920 100 % 48 % 52 % As shown by these data, net operating income is budgeted at $127,920 for the month and the estimated break-even sales is $444,000. Assume that actual sales for the month total $690,000 as planned. Actual sales by product are: White, $220,800; Fragrant, $276,000; and Loonzain, $193,200.

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 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income. Dollar sales to break-even = White 48 % $ 331,200 99,360 $ 231,840 Fixed expenses CM ratio Fragrant 20% $230,880 0.52 100 % $ 138,000 100% $ 220,800 110,400 30% 70% $ 27,600 80% 121,440 20% $ 99,360 Loonzain 32% = $444,000 100 % 55 % 45% Total 100 % $ 690,000 331,200 358,800 230,880 $ 127,920 100 % 48 % 52 % As shown by these data, net operating income is budgeted at $127,920 for the month and the estimated break-even sales is $444,000. Assume that actual sales for the month total $690,000 as planned. Actual sales by product are: White, $220,800; Fragrant, $276,000; and Loonzain, $193,200.

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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