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 = $702,000 = $702,000 CM ratio 0.64 As shown by these data, net operating income is budgeted at $30,720 for the month and breakeven 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. Present the income statement in the format shown above. 2. Compute the break-even point in dollar sales for the month based on your actual data. 3. Considering the fact that the company met its $750,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why both the operating results and the break-even point in dollar sales are different from what was budgeted.