Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three...
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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: Product White 48 % Eragrant Loonzain Total Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income 20 % 32 100 % $198,400 109,120 20% $ 89,280 100 % $297,600 89,280 $ 208,320 100 % $124,000 99,200 70% $ 24,800 100 % $620,000 297,600 322,400 224,120 $ 98,280 100 % 30 % 80 % 55 % 45 % 52 % Fixed expenses $224,120 0.52 $431,000 Dollar sales to break-even- CM ratio As shown by these data, net operating income is budgeted at $98,280 for the month and the estimated break-even sales is $431,000 Assume that actual sales for the month total $620,000 as planned. Actual sales by product are: White, $198,400; Fragrant, $248,000; and Loonzain, $173,600 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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