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 Fragrant Loonzain Total Percentage of total sales 48 % 20% 32 % 100 % Sales $ 326,400 100 % $ 136,000 100 % $ 217,600 100 % $ 680,000 100 % Variable expenses 97,920 30 % 108,800 80 % 119,680 55 % 326,400 48% Contribution margin $ 228,480 70 % $ 27,200 20 % $ 97,920 45 % 353,600 52% Fixed expenses 228,280 Net operating income $ 125,320 Dollar sales to break-even = Fixed expenses = $228,280 = $439,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $125,320 for the month and the estimated break-even sales is $439,000. Assume that actual sales for the month total $680,000 as planned. Actual sales by product are: White, $217,600; Fragrant, $272,000; and Loonzain, $190,400. 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, 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 Fragrant Loonzain Total Percentage of total sales 48 % 20% 32 % 100 % Sales $ 326,400 100 % $ 136,000 100 % $ 217,600 100 % $ 680,000 100 % Variable expenses 97,920 30 % 108,800 80 % 119,680 55 % 326,400 48% Contribution margin $ 228,480 70 % $ 27,200 20 % $ 97,920 45 % 353,600 52% Fixed expenses 228,280 Net operating income $ 125,320 Dollar sales to break-even = Fixed expenses = $228,280 = $439,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $125,320 for the month and the estimated break-even sales is $439,000. Assume that actual sales for the month total $680,000 as planned. Actual sales by product are: White, $217,600; Fragrant, $272,000; and Loonzain, $190,400. 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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...

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Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?
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