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 | $ | 345,600 | 100 | % | $ | 144,000 | 100 | % | $ | 230,400 | 100 | % | $ | 720,000 | 100 | % | ||||
Variable expenses | 103,680 | 30 | % | 115,200 | 80 | % | 126,720 | 55 | % | 345,600 | 48 | % | ||||||||
Contribution margin | $ | 241,920 | 70 | % | $ | 28,800 | 20 | % | $ | 103,680 | 45 | % | 374,400 | 52 | % | |||||
Fixed expenses | 227,760 | |||||||||||||||||||
Net operating income | $ | 146,640 | ||||||||||||||||||
Dollar sales to break-even | = | Fixed expenses | = | $227,760 | = $438,000 |
CM ratio | 0.52 |
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 that actual sales for the month total $720,000 as planned. 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.
Prepare a contribution format income statement for the month based on the actual sales data.
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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 =
1 | ||||||||
White | Fragrant | Loonzain | Total | |||||
Percentage of total sales | 32% | 40% | 28% | 100% | ||||
Sales | 230400 | 100% | 288000 | 100% | 201600 | 100% | 720000 | 100% |
Variable expenses | 69120 | 30% | 230400 | 80% | 110880 | 55% | 410400 | 57% |
Contribution margin | 161280 | 70% | 57600 | 20% | 90720 | 45% | 309600 | 43% |
Fixed expenses | 227760 | |||||||
Net operating income | 81840 | |||||||
2 | ||||||||
Break even point in dollar sales | 529674 | =227760/43% |
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—Fragrant, White, 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 $ 355,200 100% $ 148,000 100% $ 236,800 100% $ 740,000 100% Variable expenses 106,560 30% 118,400 80% 130,240 55% 355,200 48% Contribution margin $ 248,640 70% $ 29,600 20% $...
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 Fixed expenses Net operating income 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...
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 Fixed expenses Net operating income White 48 % $ 326,400 97,920 $ 228,480 Product Fragrant Loonzain 20 % 32 % 100 % $ 136,000 100 % $ 217,600 100 % 30 % 108,800 80% 119,680 55...
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 Fixed expenses Net operating income Fragrant 20% $ 146,000 116.800 $ 29,200 350, 400 100 % 105. 1200 245,280 70 100% Product Loontain 32 % 100 % $ 233,600 128,480 20 $ $ 105,120 100...
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 20 % 52 % 28 % 100 % Sales $ 150,000 100 % $ 390,000 100 % $ 210,000 100 % $ 750,000 100 % Variable expenses 108,000 72 % 78,000 20 % 84,000 40 %...
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 $ 297,600 100 % $ 124,000 100 % $ 198,400 100 % $ 620,000 100 % Variable expenses 89,280 30 % 99,200 80 % 109,120 55 %...
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 Fixed expenses Net operating income White 48 $ 379,200 113,760 $ 265,440 100 % 30 % 70% Product Fragrant Loonzain 20 32% $ 158,000 100% $ 252,800 100% 126,400 B0% 139,040 55 $ 31,600 20 %...
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 $ 316,800 100 % $ 132,000 100 % $ 211,200 100 % $ 660,000 100 % Variable expenses 95,040 30 % 105,600 80 % 116,160 55 %...
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 Fixed expenses Net operating income White 48% $360,000 108,000 $ 252,000 Product Fragrant Loonzain 20$ 32% 100 $ 150,000 100% $ 240,000 100 38 120,000 88 132,000 55 799 $ 30,000 20 % $ 108,000 45...
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 %...