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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
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 Percentage of total sales White 48% Fragrant 20% Loonzain 326 Total 100% Sales Variable expenses $ 307,200 92,160 100% 30 Contribution margin Fixed expenses Net operating income $ 215,040 70% $128,000 102,400 $ 25,600 20 100% $204,800 80% 112,640 $92,160 100% 558 $640,000 307,200 100% 451 332,800 225,680 $107,120 528 Dollar sales to break-even - Fixed expenses/CM ratio = $225,680/0.52 $434,000 As shown by these data, net operating income is budgeted at $107,120 for the month and the estimated break-even sales is $434,000. Assume that actual sales for the month total $640,000 as planned; however, actual sales by product are: White, $204,800; Fragrant, $256,000; and Loonzain, $179,200. 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 Prepare a contribution format income statement for the month based on the actual sales data.
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