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Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Dollarsalestobreak-even=CMratioFixedexpenses=0.52$227,760=$438,000 As shown by these data, net operating income is budgeted at $84,240 for the month and the estimated break-even sales is $438,000. Assume that actual sales for the month total $600,000 as planned. Actual sales by product are: White, $192,000; Fragrant, $240,000; and Loonzain, $168,000. 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
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