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Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three...

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Accounting

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of riceWhite, Fragrant, 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 48%20%32%100%
Sales $ 379,200100% $ 158,000100% $ 252,800100% $ 790,000100%
Variable expenses 113,76030%126,40080%139,04055%379,20048%
Contribution margin $ 265,44070% $ 31,60020% $ 113,76045%410,80052%
Fixed expenses 229,320
Net operating income $ 181,480
Dollar sales to break-even = Fixed expenses / CM ratio = $229,320/0.52= $441,000
As shown by these data, net operating income is budgeted at $181,480 for the month and the estimated break-even sales is $441,000.
Assume that actual sales for the month total $790,000 as planned; however, actual sales by product are: White, $252,800; Fragrant, $316,000; and Loonzain, $221,200.
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.

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