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3 Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales
3 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: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses eBook Net operating income Product White 48% Fragrant 20% Loonzain 32% $288,000 86,400 $201,600 100% 30% $ 120,000 96,000 70% $ 24,000 100% 80% $192,000 105,600 $ 86,400 20% 100% 55% Total 100% $ 600,000 288,000 100% 48% 45% 312,000 52% 223,600 $88,400 Dollar sales to break-even - Fixed expenses/CM ratio $223,600/0.52 $430,000 As shown by these data, net operating income is budgeted at $88,400 for the month and the estimated break-even sales is $430,000. Assume that actual sales for the month total $600,000 as planned; however, actual sales by product are: White, $192,000, Fragrant, $240,000; and Loonzain, $168,000 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 1 Required 21 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement White Percentage of total sales Variable expenses % Fragrant % Product Loonzain % Total % % " $ 0 0% 5 0 0% 5 0 0% 0 1% 0%
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