Gold Star Rice, Ltd., 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: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 48 % $ 336,000 100,800 $ 235, 200 Product Fragrant Loonzain 20 % 323 100 $ $ 140,000 100 % $ 224,000 100 % 30 112,000 80% 123,200 55 % 70 % $ 28,000 20 % $ 100, 800 45 % Total 100 % $ 700,000 336,000 364,000 232,440 $ 131,560 100 % 48 % 52 % Dollar sales to break-even Fixed expenses CM ratio $ 232,440 0.52 = $447,000 As shown by these data, net operating income is budgeted at $131,560 for the month and the estimated break-even sales is $447,000. Assume that actual sales for the month total $700,000 as planned; however, actual sales by product are: White, $224,000; Fragrant, $280,000; and Loonzain, $196,000. 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. Assume that actual sales for the month total $700,000 as planned; however, actual sales by product are: White, $224,000; Fragrant, $280,000, and Loonzain, $196,000. 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 2 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Ltd. Contribution Income Statement Product Fragrant % White Loonzain Total Percentage of total sales % % % % % % % % % % % $ 0 0 % $ 0 0 % $ 0 0 % 0 0 % $ 0 Required 1 Required 2 Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Break-even point in dollar sales
