Question
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
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: |
Product |
White | Fragrant | Loonzain | Total | |||||||||
Percentage of total sales | 20% | 52% | 28% | 100% | ||||||||
Sales | $ | 150,000 | 100% | $ | 390,000 | 100% | $ | 210,000 | 100% | $ | 750,000 | 100% |
Variable expenses | 108,000 | 72% | 78,000 | 20% | 84,000 | 40% | 270,000 | 36% | ||||
Contribution margin | $ | 42,000 | 28% | $ | 312,000 | 80% | $ | 126,000 | 60% | 480,000 | 64% | |
Fixed expenses | 449,280 | |||||||||||
Net operating income | $ | 30,720 | ||||||||||
Dollar sales to break even | = | Fixed expenses | = | $449,280 | = $702,000 |
CM ratio | 0.64 |
As shown by these data, net operating income is budgeted at $30,720 for the month and break even sales at $702,000. |
Assume that actual sales for the month total $750,000 as planned. Actual sales by product are: White, $300,000; Fragrant, $180,000; and Loonzain, $270,000. |
Required: | |
1. | Prepare a contribution format income statement for the month based on actual sales data. |
how to find total percentage |
|
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