Question

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: Percentage of total sales Sales Variable expenses Contribution margin White 48% $ 316,800 95,040 $ 221,760 100 % 30 % 70 % Product Fragrant Loonzain 20% 32 % $ 132,000 100% $ 211,200 100 % 105,600 80% 116, 160 55 % $ 26,400 20 % $ 95,040 45 % Total 100 % $ 660,000 316,800 343,200 100 % 48% 52 % Fixed expenses Net operating income 225,160 $ 118,040 Dollar sales to break-even = . Fixed expenses CM ratio $225,160 0.52 = $433,000 As shown by these data, net operating income is budgeted at $118,040 for the month and the estimated break-even sales is $433,000. Assume that actual sales for the month total $660,000 as planned. Actual sales by product are: White, $211,200; Fragrant, $264,000; and Loonzain, $184,800. 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.

Answer 1

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Aus: 0 Percentage of total sales Sales Variable Expenses contribution margin fixed expenses | Net. Operating Income Cold Star Rice, etc Confecitation Income Statement Product White Ifragrant | Loonzain Total 324. 40%. 28%. 100 y. $ 211,900 100%. $264,000 100% $184,800 100% $ 660,000 100% $63,360 30%. $29.11.200 80% $101,640 55% $376,2800 570% $147,840 76% $58,800 20% $83,160 H15%. $263,8 co 43%. $225,160 $58,640 ® Dollar Sales to Break even a fixed Expense cm Ratio $225, 1.60 0.43 $ 523, 688 $ 523.6