Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gold Star Rice, Ltd. of Thailand exports That 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 That 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 Fragrant Loonzain Total Percentage of total sales 48 % 20% 32% 100% Sales $ 292,800 100 $ 122,000 100 % $ 195,209 100 $610, eee 100% Variable expenses 87,840 30 % 97,600 80 % 107, 360 55% 292,800 Contribution margin $ 204,960 70 $ 24,400 20% $ 87,840 317,280 52% Fixed expenses 233,480 Net operating income $ 83,720 Dollar sales to break-even Fixed expenses CM ratio $233, 480 0.52 = $449,000 As shown by these data, net operating income is budgeted at $83,720 for the month and the estimated break-even sales is $449,000. Assume that actual sales for the month total $610,000 as planned, however, actual sales by product are: White, $195,200, Fragrant, $244.000; and Loonzain, $170,800. 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 White Fragrant Loonzain Total
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started