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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

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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 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 20% $369,600 100% $154,000 100% $246,400 100% $770,000 100% 35,520 55% 369,600 48% 110,880 30% 123,200 80% 1 $258,720 70% $30,800 20% $110,880 45% 400,400 52% Contribution margin Fixed expenses Net operating income 228,280 172,120 Fixed expenses CM ratio $228,280 -$439,000 Dollar sales to break even - 0.52 As shown by these data, net operating income is budgeted at $172,120 for the month and break even sales at $439,000 Assume that actual sales for the month total $770,000 as planned. Actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600

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