Problem 2-21 (Algo) Sales Mix; Multiproduct Break-Even Analysis [LO2-9] 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 Fragrant 20% 32% 100% $ 142,000 100% $ 227,200 +++ 80% 124,960 20% $ 102,240 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses + CM ratio = $223,600+ 0.52 = $430,000 As shown by these data, net operating income is budgeted at $145,600 for the month and the estimated break-even sales is $430,000. Percentage of total sales White $ 48% $ 340,800 0 102,240 $ 238,560 White % 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. Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Product de de 30% % 113,600 % 70% $ 28,400 0% $ Loonzain Assume that actual sales for the month total $710,000 as planned; however, actual sales by product are: White, $227,200; Fragrant, $284,000; and Loonzain, $198,800. Fragrant % 0 % % 0% $ Loonzain 0 55% 100% $ 710,000 45% Total % 100% 0% 340,800 369,200 $ 145,600 223,600 $ 100% 48% 52% Total 0 0 % Se e % 0%
Problem 2-21 (Algo) Sales Mix; Multiproduct Break-Even Analysis [LO2-9] 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 Fragrant 20% 32% 100% $ 142,000 100% $ 227,200 +++ 80% 124,960 20% $ 102,240 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses + CM ratio = $223,600+ 0.52 = $430,000 As shown by these data, net operating income is budgeted at $145,600 for the month and the estimated break-even sales is $430,000. Percentage of total sales White $ 48% $ 340,800 0 102,240 $ 238,560 White % 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. Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Product de de 30% % 113,600 % 70% $ 28,400 0% $ Loonzain Assume that actual sales for the month total $710,000 as planned; however, actual sales by product are: White, $227,200; Fragrant, $284,000; and Loonzain, $198,800. Fragrant % 0 % % 0% $ Loonzain 0 55% 100% $ 710,000 45% Total % 100% 0% 340,800 369,200 $ 145,600 223,600 $ 100% 48% 52% Total 0 0 % Se e % 0%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 2-21 (Algo) Sales Mix; Multiproduct Break-Even Analysis [LO2-9]
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%
$ 340,800
102,240
$ 238,560
Percentage of total sales
100%
30%
70%
White
%
0
Fragrant
20%
$ 142,000
113,600
$ 28,400
%
%
0% $
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.
Product
100%
80%
20%
Fixed expenses
Net operating income
Dollar sales to break-even = Fixed expenses + CM ratio = $223,600 = 0.52=$430,000
As shown by these data, net operating income is budgeted at $145,600 for the month and the estimated break-even sales is
$430,000.
Prepare a contribution format income statement for the month based on the actual sales data.
Gold Star Rice, Limited
Contribution Income Statement
Product
Fragrant
%
0
Assume that actual sales for the month total $710,000 as planned; however, actual sales by product are: White, $227,200; Fragrant,
$284.000; and Loonzain, $198,800.
Loonzain
32%
$ 227,200
124,960
$ 102,240
%
0% $
100%
55%
45%
Loonzain
%
0
$ 710,000
340,800
369,200
223,600
$ 145,600
Total
100%
%
0%
100%
48%
52%
Total
0
0
%
%
0%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b451cd4-188c-465c-9c84-d45f3d7beb1f%2Feb9858c7-b891-4889-882f-3e28a327c7b9%2F76ckbea_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 2-21 (Algo) Sales Mix; Multiproduct Break-Even Analysis [LO2-9]
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%
$ 340,800
102,240
$ 238,560
Percentage of total sales
100%
30%
70%
White
%
0
Fragrant
20%
$ 142,000
113,600
$ 28,400
%
%
0% $
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.
Product
100%
80%
20%
Fixed expenses
Net operating income
Dollar sales to break-even = Fixed expenses + CM ratio = $223,600 = 0.52=$430,000
As shown by these data, net operating income is budgeted at $145,600 for the month and the estimated break-even sales is
$430,000.
Prepare a contribution format income statement for the month based on the actual sales data.
Gold Star Rice, Limited
Contribution Income Statement
Product
Fragrant
%
0
Assume that actual sales for the month total $710,000 as planned; however, actual sales by product are: White, $227,200; Fragrant,
$284.000; and Loonzain, $198,800.
Loonzain
32%
$ 227,200
124,960
$ 102,240
%
0% $
100%
55%
45%
Loonzain
%
0
$ 710,000
340,800
369,200
223,600
$ 145,600
Total
100%
%
0%
100%
48%
52%
Total
0
0
%
%
0%
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