Problem 6-21 (Algo) Sales Mix: Multiproduct Break-Even Analysis (L06-9) Gold Star Rice, Limited, 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 vived expenses Not operating Incone White 48 $ 307,700 1004 92.160 304 # 215,040 701 Product Fragrant 204 $ 120.000 1000 102,400 001 $ 25,600 200 toonsai 320 5 204,600 100 112,640 892.160 100% Total 1000 640,000 302200 352,000 220700 106.600 520 Dollar sales to break even Fixed expenses/CM ratio - $226.200/0.52 - 5435,000 As shown by these data, net operating income is budgeted at $106,600 for the month and the estimated break-even sales is $435,000 Assume that actual sales for the month total $640,000 as planned, however actual sales by product ore: White, $204,800; Fragrant $256,000, and Loonzain, $179,200 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data 2. Compute the break-even point in dollar sales for the month based on your actual data Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format Income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Product Fragrant White Loonzain Total Gold Star Rice, Limited, 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: 1001 1000 403 520 300 700 Product White Fragrant Loon ain Total Percentage of total sales 400 208 320 1005 Bales $ 307,200 $ 120,000 1005 $ 204,000 1009 $ 640,000 Variable expenses 92,160 102,400 BON 112,640 302.200 Contribution margin $ 215,040 $ 25,600 200 5.92,160 454 $ 332,800 Pixed expenses 226, 200 Net operating income $ 106,600 Dollar sales to break-even = Fixed expenses/CM ratio - $226,200/0,52 - $435,000 As shown by these data, net operating income is budgeted at $106,600 for the month and the estimated break-even sales is $435,000 Assume that actual sales for the month total $640,000 as planned; however, actual sales by product are: White, $204,800; Fragrant, $256.000; and Loonzain, $179,200. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Break-even point in dollar sales Required2
