Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gold Star Rice, Ltd., of Thailand exports Thal rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product

image text in transcribed
image text in transcribed
image text in transcribed
Gold Star Rice, Ltd., of Thailand exports Thal 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: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating incone White 48 $ 369,600 110,880 $ 258, 720 100 30 70 Product Fragrant Loonzain 20 32 $ 154,000 100 $ 246,400 100. 123,200 80 135,520 55 $ 30,800 20% $ 110,880 453 Total 100 $ 770,000 369,600 400,400 230,360 $ 170,040 100 48 52 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 $170,040 for the month and the estimated break-even sales is $443,000. 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. 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 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 100% White Total Loonzain 1001% Percentage of total sales Variable expenses 100% 100% $ 30 % % % % % % 0 % % % 0 % $ 30 $ 0 $ 0 0 % 0 0 % $ 0 Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Quality Systems Auditing

Authors: Paul F. Lewis

1st Edition

1570744076, 978-1570744075

More Books

Students also viewed these Accounting questions