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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

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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 White Fragrant Loonzain Total Percentage of total sales 48% 100% 20% 355,200 100% 148,000 100% 236,800 100% $740,000 100% Sales Variable expenses 106,560 30% 118,400 80% 130,240 55% 355.200 48% Contribution margin 248,640 70% 29,600 20% 106,560 45% 384,800 52% Fixed expenses 229.320 Net operating income 155,480 Fixed expenses $229,320 Dollar sales to break even $441,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $155,480 for the month and break even sales at $441,000. Assume that actual sales for the month total $740,000 as planned. Actual sales by product are: White, $236,800: Fragrant, $296,000; and Loonzain, $207,200

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