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Is this correct? If not please correct any mistake Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties
Is this correct? If not please correct any mistake
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: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 48 % $ 302,400 90, 720 $ 211,680 100 % 30 % 70 % Product Fragrant Loonzain 20 % 32 % $ 126,000 100 % $ 201,600 100 % 100, 800 80 % 110,880 55 % $ 25, 200 20% $ 90,720 45 % Total 100 % $ 630,000 302,400 327,600 226, 720 $ 100,880 100 % 48 % 52 % Dollar sales to break-even - Fixed expenses CM ratio $226, 720 0.52 = $436,000 As shown by these data, net operating income is budgeted at $100,880 for the month and the estimated break-even sales is $436,000. Assume that actual sales for the month total $630,000 as planned. Actual sales by product are: White, $201,600; Fragrant, $252,000; and Loonzain, $176,400. 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. 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 Total Loonzain 32% 481% 100% Percentage of total sales Sales $ 100% $ Fragrant 20% 252,000 201,600 50,400 100 % $ 100% $ 630,000 201,600 60,480 141,120 176,400 97,0201 100% 48% Variable expenses Contribution margin 55% 30% 70 % 80% 20 % 302,400 327,600 $ $ $ 79,380 45 % 52 % Fixed expenses 226,720 100,880 Net operating income $ 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 $ 532,308Step by Step Solution
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