PROBLEM 6-20 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. (The currency in Thailand is the baht, which is denoted by B.) Budgeted sales by product and in total for the coming month are shown below: Product White Fragrant Loonzain Total Percentage of total sales Sales .... Variable expenses. . Contribution margin ..... 20% B150,000 108,000 B 42,000 52% 28% 100% 100% 72% B390,000 100% B210,000 100% B750,000 100% 28% 78,000 B312,000 20% 84,000 40% 270,000 36% 80% B126,000 60% 480,000 64% Fixed expenses.. Net operating income. 449,280 B30,720 Dollar sales to Fixed expenses break even CM ratio B449,280 0.64 = B702,000 As shown by these data, net operating income is budgeted at B30,720 for the month and break-even sales at B702,000. Assume that actual sales for the month total B750,000 as planned. Actual sales by product are: White, B300,000; Fragrant, B180,000; and Loonzain, B270,000. Required: 1. Prepare a contribution format income statement for the month based on actual sales data. Pres- ent the income statement in the format shown on the prior page. 2. 3. Compute the break-even point in sales dollars for the month based on your actual data. Considering the fact that the company met its B750,000 sales budget for the month, the presi- dent 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 sales dollars are different from what was budgeted.