Question

Gold Star Rice, Ltd., of Thailand exports Thal 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: points Product Fragrant Loonzain 20 Percentage of total eBook $336,000 100.900 $235.200 100 30 70 $140,000 112.000 $28.000 Sales Variable expenses Contribution margin Fixed expenses Net operating income 100 + $ 224,000 80 123,200 20 $100,800 100 55 45 $ 700,000 336,000 364.000 224, 120 $139,880 100% 48% 52% Print Reference Dollar sales to break-even - Fixed expenses CM ratio - $224, 120 - 0.52 $431,000 As shown by these data, net operating income is budgeted at $139,880 for the month and the estimated break-even sales is $431,000. Assume that actual sales for the month total $700,000 as planned. Actual sales by product are: White, $224,000; Fragrant. $280,000, and Loonzain. $196,000. 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. Complete this question by entering your answers in the tabs below. Required Required Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Ltd. Contribution Income Statement Product Fragrant Loonzain White Total Percentage of total Recured Required 2 >

Answer 1

Percentage of Total Sales Sale Variabel Expenses Contribution Margin Fixed Cost Net operating Income Contribution Margin Income Statement Products white Fragrant | Loonzain 32% 40% 28% 224000 100% 280000 100% 196000 100% 67200 30% 224000 80% 107800 55% 156800 70% 56000/ 20% 88200 45% Total Total 100% 700000 399000 301000 224120 76880 100.0% 57.0% 43.0% 2012 Break Even in Dollar Sales = Fixed Cost / CM Ratio = (224120/0.43) 521209