PROBLEM 521 Sales Mix; Multiproduct Break-Even Analysis (L09] Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice Fragrant, White, 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 Sales ... 20% $150,000 108,000 $ 42,000 100% 72% 28% 52% $390,000 78,000 $312,000 100% 20% 80% 28% $210,000 84.000 $126,000 100% 40% 60% 100% $750,000 270,000 480,000 449,280 $30,720 100% 36% 64% Variable expenses Contribution margin Fixed expenses .. Net operating income ..... Dollar sales to _Fixed expenses $449,280 CM ratio 0.64 $702,000 break even As shown by these data, net operating income is budgeted at $30,720 for the month and break-even sales at $702,000. Assume that actual sales for the month total $750,000 as planned. 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 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 both the operating results and the break-even point in dollar sales are different from what was budgeted