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Problem 5-21 (Algo) Sales Mix; Multiproduct Break-Even Analysis [LO5-9] Gold Star Rice, Ltd, of Thailand exports Thai rice throughout Asia. The company grows three
Problem 5-21 (Algo) Sales Mix; Multiproduct Break-Even Analysis [LO5-9] 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 Product White 48 % Fragrant 20% Loonzain 32 % Total 100% $316,800 95,040 $221,760 100% $132,000 30% 105,600 70% 5 26,400 100% $211,200 100% $660,000 80% 116,160 55% 20% $ 95,040 45% 316,800 343,200 100% 48% 52% 225,680 $ 117,520 Dollar sales to break-even Fixed expenses C ratio $225,680 0.52 = $434,000 As shown by these data, net operating income is budgeted at $117.520 for the month and the estimated break-even even sales is $434,000.
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