Gold Star Rice, Ltd , of Thailand exports Thai rice throughout Asia The company grows three varieties of riceFragrant, White, and Loonzain Budgeted sales by product and in total for the coming month are shown below (in order) (White) (Fragrant) (Loonzain) (Total) of total sales 48 20 32 100 sales $345,600 100 $144,000 100 $230,400 100 $720,000 100 variable expenses 103,680 30 115,200 80 126,720 55 345,600 48 contribution margin $241,920 70 $28,800 20 $103,680 45 374,400 52 fixed expenses 225,680 net operating income $148,720 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 $148,720 for the month and break even sales at $434,000 Assume that actual sales for the month total $720,000 as planned Actual sales by product are White, $230,400 Fragrant, $288,000 and Loonzain, $201,600 Required 1 Prepare a contribution format income statement for the month based on actual sales data (X stands for percentage unknown and $X stands for dollar amount unkown) Gold Star Rice, Ltd Contribution Income Statement Product White Fragrant Loonzain Total Percentage of total X X X X Sales $X 100 $X 100 $X 100 $720,000 100 Variable Expenses $X 30 $X 80 $X 55 $ X Contribution Margin $X 70 $X 20 $X 45 Fixed Expenses $225,680 Net Operating Income 2 Compute the break even point in dollar sales for the month based on your actual data (Round your final answer to the nearest whole dollar) Break even point in sales dollars X Gold Star Rice, Ltd , of Thailand exports Thai rice throughout Asia The company grows three varieties of rice Fragrant, White, and Loonzain Budgeted sales by product and in total for the coming month are shown below Product Total Fragrant White Loonzain 100 Percentage of total sales 48 20 32 345,600 100 144,000 100 230,400 100 720,000 100 Sales Variable expenses 103,680 30 115,200 80 126,720 55 345,600 48 241,920 70 28,800 20 103,680 45 374,400 52 Contribution margin 225,680 Fixed expenses 148,720 Net operating income $225,680 Fixed expenses $434,000 0 52 Dollar sales to break even CM ratio As shown by these data, net operating income is budgeted at $148,720 for the month and break even sales at $434,000 Assume that actual sales for the month total $720,000 as planned Actual sales by product are White, $230,400 Fragrant, $288,000 and Loonzain, $201,600 Required 1 Prepare a contribution format income statement for the month based on actual sales data

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 14, 2024

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of riceFragrant, White, and Loonzain. Budgeted sales by product

image text in transcribed

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of riceFragrant, White, and Loonzain. Budgeted sales by product and in total for the coming month are shown below (in order):

(White) (Fragrant) (Loonzain) (Total)

% of total sales	48%		20%		32%		100%
sales	$345,600	100%	$144,000	100%	$230,400	100%	$720,000	100%
variable expenses	103,680	30%	115,200	80%	126,720	55%	345,600	48%
contribution margin	$241,920	70%	$28,800	20%	$103,680	45%	374,400	52%
fixed expenses							225,680
net operating income							$148,720

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 $148,720 for the month and break even sales at $434,000.

Assume that actual sales for the month total $720,000 as planned. Actual sales by product are: White, $230,400; Fragrant, $288,000; and Loonzain, $201,600.

Required:

1. Prepare a contribution format income statement for the month based on actual sales data. (X% stands for percentage unknown and $X stands for dollar amount unkown).

				Gold Star Rice, Ltd.
				Contribution Income Statement
				Product
	White		Fragrant		Loonzain			Total
Percentage of total	X%		X%		X%		X%
Sales	$X	100%	$X	100%	$X	100%	$720,000	100%
Variable Expenses	$X	30%	$X	80%	$X	55%	$	X%
Contribution Margin	$X	70%	$X	20%	$X	45%
Fixed Expenses							$225,680
Net Operating Income

2. Compute the break-even point in dollar sales for the month based on your actual data. (Round your final answer to the nearest whole dollar).

Break-even point in sales dollars = X

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-Fragrant, White, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product Total Fragrant White Loonzain 100% Percentage of total sales 48% 20% 32% 345,600 100% 144,000 100% 230,400 100% 720,000 100% Sales Variable expenses 103,680 30% 115,200 80% 126,720 55% 345,600 48% 241,920 70% 28,800 20% 103,680 45% 374,400 52% Contribution margin 225,680 Fixed expenses 148,720 Net operating income $225,680 Fixed expenses $434,000 0.52 Dollar sales to break even CM ratio As shown by these data, net operating income is budgeted at $148,720 for the month and break even sales at $434,000. Assume that actual sales for the month total $720,000 as planned. Actual sales by product are: White, $230,400; Fragrant, $288,000; and Loonzain, $201,600. Required: 1. Prepare a contribution format income statement for the month based on actual sales data