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Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-Fragrant. White, and Loonzain. Budgeted sales by product
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-Fragrant. White, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Dollar sales to break even = Fixed expenses/CM ratio = $230, 360/0.52 = $443,000 As shown by these data, net operating income is budgeted at $118, 040 for the month and break even sales at $443,000. 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: Prepare a contribution format income statement for the month based on actual sales data
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