Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragran Loonzain. Budgeted sales by product and
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragran 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% 5 350,400 105,120 $ 245, 280 100% 30% 70% Product Fragrant 28% $ 146,000 180% 116,800 89% $ 29,209 20% Loonzain 32% $ 233,689 1994 128,489 55% $ 105,120 45% Total 189% $ 739,899 350,400 379,600 233, 489 $ 146,120 180 48 52 5 Dollar sales to break-even Fixed expenses CM ratio $233, 480 8.52 = $449,000 As shown by these data net operating income is budgeted at $146,120 for the month and the estimated break-even sales is $449. Assume that actual sales for the month total $730,000 as planned. Actual sales by product are: White, $233,600; Fragrant. S292,00 and Loonzain. $204.400. 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 Compute the break-even point in dollar sales for the month based on your actual data. (Round your answer to the nearest whole dollar amount. Break-even point in dollar sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started