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:

	Product
	White					Fragrant					Loonzain					Total
Percentage of total sales		48	%				20	%				32	%				100	%
Sales	$	369,600		100	%	$	154,000		100	%	$	246,400		100	%	$	770,000		100	%
Variable expenses		110,880		30	%		123,200		80	%		135,520		55	%		369,600		48	%
Contribution margin	$	258,720		70	%	$	30,800		20	%	$	110,880		45	%		400,400		52	%
Fixed expenses																	232,960
Net operating income																$	167,440

Dollar sales to break-even	=	Fixed expenses	=	$232,960	= $448,000
		CM ratio		0.52

As shown by these data, net operating income is budgeted at $167,440 for the month and the estimated break-even sales is $448,000.

Assume that actual sales for the month total $770,000 as planned. Actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600.

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.

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

Gold Star Rice, Ltd.

Contribution Income Statement

Product

White

Fragrant

Loonzain

Total

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