Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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.

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

14th Global Edition

978-0273753872, 0273753878

More Books

Students also viewed these Accounting questions

Question

=+ Do you see any potential problems with the analysis?

Answered: 1 week ago