8)

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of riceWhite, 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	$ 350,400	100%	$ 146,000	100%	$ 233,600	100%	$ 730,000	100%
Variable expenses	105,120	30%	116,800	80%	128,480	55%	350,400	48%
Contribution margin	$ 245,280	70%	$ 29,200	20%	$ 105,120	45%	379,600	52%
Fixed expenses							229,320
Net operating income							$ 150,280

Dollar sales to break-even = Fixed expenses / CM ratio = $229,320 / 0.52 = $441,000

As shown by these data, net operating income is budgeted at $150,280 for the month and the estimated break-even sales is $441,000.

Assume that actual sales for the month total $730,000 as planned; however, actual sales by product are: White, $233,600; Fragrant, $292,000; and Loonzain, $204,400.

Required:

1. Prepare a contribution format income statement for the month based on the actual sales data.

Gold Star Rice, Limited
Contribution Income Statement
	Product
	White			Fragrant			Loonzain			Total
Percentage of total sales		%			%			%			%
			%			%			%			%
			%			%			%			%
	$0	0	%	$0	0	%	$0	0	%	0	0	%
										$0

2. Compute the break-even point in dollar sales for the month based on your actual data.

	Break-even point in dollar sales