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: Product White 48 % Loonzain 32 % Total 100 % Fragrant Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income 20 100 % $134,000 107,200 70% $ 26,800 $321,600 96,480 $ 225,120 100 % $214,400 117,920 20% $ 96,480 100 % $670,000 321,600 348,400 225,160 $ 123,240 100 % 48 % 30 % 80 % Fixed expenses CM ratio $225,160 - $433,000 Dollar sales to break-even- 0.52 As shown by these data, net operating income is budgeted at $123,240 for the month and the estimated break-even sales is $433,000 Assume that actual sales for the month total $670,000 as planned. Actual sales by product are: White, $214,400; Fragrant, $268,000; and Loonzain, $187,600 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the month based on the actual sales data Gold Star Rice, Ltd Contribution Income Statement Product Fragrant White Loonzain Total Percentage of total sales 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 K Required1 Required 2> Lindon Company is the exclusive distributor for an automotive product that sells for $24.00 per unit and has a CM ratio of 30% The company's fixed expenses are $118,800 per year. The company plans to sell 18,100 units this year. Required 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $46,800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.40 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $46,800? 1. |Variable expense per unit 2. Break-even point in units Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit 4. New break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit
