3.Considering the fact that the company met its $750,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why the net operating income (loss) and the break-even point in dollar sales are different from what was budgeted.

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 20% 52% 28% 1008 sales Sales $ 150,000 100 % $390,000 100 %$210,000 100 8 $750,000 100 % Variable 108,000 72% 78,000 20% 84,000 40 $ 270,000 36% expenses Contributions 42,000 28 8 $312,000 808$126,000 60% 480,000 64% margin Fixed 449, 280 expenses Net operating $ 30,720 income Dollar sales Fixed $449,280 - to break-even expenses $702,000 CM ratio 0.64 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000. Assume that actual sales for the month total $750,000 as planned. Actual sales by product are: White, $300,000; Fragrant, $180,000; and Loonzain, $270,000. 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