Gold Star Rice, Limited, of Thailand exports Thal 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 Percentage of total sales White 48% Fragrant 20% Loonzain 32% Total 100% Sales Variable expenses $ 350,400 105,120 100% 30% $ 146,000 116,800 Contribution margin Fixed expenses Net operating income $ 245,280 70% $ 29,200 20% 100% $ 233,600 80% 128,480 $ 105,120 100% 55% $ 730,000 350,400 100% 48% 45% 379,600 52% 232,440 $ 147,160 Dollar sales to break-even = Fixed expenses + CM ratio = $232,440 +0.52 = $447,000 As shown by these data, net operating Income is budgeted at $147,160 for the month and the estimated break-even sales is $447,000. Assume actual sales for the month total $730,000 as planned; however, actual sales by product are White, $233,600, Fragrant, $292,000; and Loonzain, $204,400. 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.
Gold Star Rice, Limited, of Thailand exports Thal 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 Percentage of total sales White 48% Fragrant 20% Loonzain 32% Total 100% Sales Variable expenses $ 350,400 105,120 100% 30% $ 146,000 116,800 Contribution margin Fixed expenses Net operating income $ 245,280 70% $ 29,200 20% 100% $ 233,600 80% 128,480 $ 105,120 100% 55% $ 730,000 350,400 100% 48% 45% 379,600 52% 232,440 $ 147,160 Dollar sales to break-even = Fixed expenses + CM ratio = $232,440 +0.52 = $447,000 As shown by these data, net operating Income is budgeted at $147,160 for the month and the estimated break-even sales is $447,000. Assume actual sales for the month total $730,000 as planned; however, actual sales by product are White, $233,600, Fragrant, $292,000; and Loonzain, $204,400. 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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
I need solution please
Transcribed Image Text:Gold Star Rice, Limited, of Thailand exports Thal 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
Percentage of total sales
Sales
White
48%
Fragrant
20%
Loonzain
32%
Total
100%
Variable expenses
$ 350,400
105,120
100%
30%
$ 146,000
116,800
100x
80%
$ 233,600
128,480
100%
55%
$ 730,000
350,400
100%
48%
Contribution margin
Fixed expenses
Net operating income
$ 245,280
70%
$ 29,200
20%
$ 105,120
45%
379,600
52%
232,440
$ 147,160
Dollar sales to break-even Fixed expenses CM ratio $232,440+ 0.52 $447,000
As shown by these data, net operating Income is budgeted at $147,160 for the month and the estimated break-even sales is $447,000.
Assume actual sales for the month total $730,000 as planned; however, actual sales by product are White, $233,600; Fragrant,
$292,000; and Loonzain, $204,400.
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,