Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales

image text in transcribed

2 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 hts Percentage of total sales White 48% Fragrant 20% Loonzain 32% Total 100% Sales $316,800 Variable expenses Contribution margin 95,040 $221,760 100% 30% 70% $ 132,000 105,600 $ 26,400 80% 20% 100% $211,200 116,160 $ 95,040 55% 100% $660,000 316,800 100% 48% 45% 343,200 52% eBook Fixed expenses 230,360 Net operating income $112,840 Print Dollar sales to break-even - Fixed expenses / CM ratio= $230.360/0.52 = $443,000 References As shown by these data, net operating income is budgeted at $112,840 for the month and the estimated break-even sales is $443,000. Assume that actual sales for the month total $660,000 as planned; however, 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 n the actual sales data

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Horngren, Harrison, Oliver

3rd Edition

978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978

More Books

Students also viewed these Accounting questions