Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please provide an answer for part 3 especially. Thanks! PROBLEM 5-21 Sales Mix; Multiproduct Break-Even Analysis LO59 Gold Star Rice, Ltd., of Thailand exports Thai
Please provide an answer for part 3 especially. Thanks!
PROBLEM 5-21 Sales Mix; Multiproduct Break-Even Analysis LO59 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: Dollarsalestobreak-even=CMratioFixedexpenses=0.64$449,280=$702,000 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000. Assume that actual sales for the month total $750,000 as planned; however, actual sales by product are: White, $300,000; Fragrant, \$180,000; and Loonzain, \$270,000. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. Present the income statement in the format shown above. 2. Compute the break-even point in dollar sales for the month based on your actual data. 3. Considering the fact that the company met its $750,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why the net operating income (loss) and the break-even point in dollar sales are different from what was budgetedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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