Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
None
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 Sales White 48% Fragrant 20% Variable expenses Contribution margin Fixed expenses Net operating income $ 345,600 103,680 $ 241,920 100% 30% $ 144,000 115,200 100% 80% 70% $ 28,800 20% Loonzain 32% $ 230,400 126,720 $ 103,680 Total 100% 100% 55% $ 720,000 345,600 100% 48% 45% 374,400 52% 227,760 $146,640 Dollar sales to break-even - Fixed expenses - CM ratio = $227,760-0.52 = $438,000 As shown by these data, net operating income is budgeted at $146,640 for the month and the estimated break-even sales is $438,000. Assume actual sales for the month total $720,000 as planned, however, actual sales by product are White, $230,400, Fragrant, $288,000, and Loonzain, $201,600. 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
Transcribed Image Text: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 Sales White 48% Fragrant 20% Variable expenses Contribution margin Fixed expenses Net operating income $ 345,600 103,680 $ 241,920 100% 30% $ 144,000 115,200 100% 80% 70% $ 28,800 20% Loonzain 32% $ 230,400 126,720 $ 103,680 Total 100% 100% 55% $ 720,000 345,600 100% 48% 45% 374,400 52% 227,760 $146,640 Dollar sales to break-even - Fixed expenses - CM ratio = $227,760-0.52 = $438,000 As shown by these data, net operating income is budgeted at $146,640 for the month and the estimated break-even sales is $438,000. Assume actual sales for the month total $720,000 as planned, however, actual sales by product are White, $230,400, Fragrant, $288,000, and Loonzain, $201,600. 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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS