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 $ 374,400 100 % $ 156,000 100 % $ 249,600 100 % $ 780,000 100 % Variable expenses 112,320 30 % 124,800 80 % 137,280 55 % 374,400 48 % Contribution margin $ 262,080 70 % $ 31,200 20 % $ 112,320 45 % 405,600 52 % Fixed expenses 234,000 Net operating income $ 171,600 Dollar sales to break-even = Fixed expenses = $234,000 = $450,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $171,600 for the month and the estimated break-even sales is $450,000. Assume that actual sales for the month total $780,000 as planned. Actual sales by product are: White, $249,600; Fragrant, $312,000; and Loonzain, $218,400. 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. PART 1 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 % $0 0 % 0 0 % $0 PART 2 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.) Break-even point in dollar sales

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 $ 374,400 100 % $ 156,000 100 % $ 249,600 100 % $ 780,000 100 % Variable expenses 112,320 30 % 124,800 80 % 137,280 55 % 374,400 48 % Contribution margin $ 262,080 70 % $ 31,200 20 % $ 112,320 45 % 405,600 52 % Fixed expenses 234,000 Net operating income $ 171,600 Dollar sales to break-even = Fixed expenses = $234,000 = $450,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $171,600 for the month and the estimated break-even sales is $450,000. Assume that actual sales for the month total $780,000 as planned. Actual sales by product are: White, $249,600; Fragrant, $312,000; and Loonzain, $218,400. 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. PART 1 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 % $0 0 % 0 0 % $0 PART 2 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.) Break-even point in dollar sales

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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Question

	Product
	White	Fragrant	Loonzain	Total
Percentage of total sales		48	%				20	%				32	%				100	%
Sales	$	374,400		100	%	$	156,000		100	%	$	249,600		100	%	$	780,000		100	%
Variable expenses		112,320		30	%		124,800		80	%		137,280		55	%		374,400		48	%
Contribution margin	$	262,080		70	%	$	31,200		20	%	$	112,320		45	%		405,600		52	%
Fixed expenses																	234,000
Net operating income																$	171,600

Dollar sales to break-even	=	Fixed expenses	=	$234,000	= $450,000
CM ratio	0.52

As shown by these data, net operating income is budgeted at $171,600 for the month and the estimated break-even sales is $450,000.

Assume that actual sales for the month total $780,000 as planned. Actual sales by product are: White, $249,600; Fragrant, $312,000; and Loonzain, $218,400.

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.

PART 1

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	%	$0	0	%	0	0	%

										$0

PART 2

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.)

Break-even point in dollar sales

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