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 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income. Dollar sales to break-even = White 48 % $ 331,200 99,360 $ 231,840 Fixed expenses CM ratio Fragrant 20% $230,880 0.52 100 % $ 138,000 100% $ 220,800 110,400 30% 70% $ 27,600 80% 121,440 20% $ 99,360 Loonzain 32% = $444,000 100 % 55 % 45% Total 100 % $ 690,000 331,200 358,800 230,880 $ 127,920 100 % 48 % 52 % As shown by these data, net operating income is budgeted at $127,920 for the month and the estimated break-even sales is $444,000. Assume that actual sales for the month total $690,000 as planned. Actual sales by product are: White, $220,800; Fragrant, $276,000; and Loonzain, $193,200.
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 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income. Dollar sales to break-even = White 48 % $ 331,200 99,360 $ 231,840 Fixed expenses CM ratio Fragrant 20% $230,880 0.52 100 % $ 138,000 100% $ 220,800 110,400 30% 70% $ 27,600 80% 121,440 20% $ 99,360 Loonzain 32% = $444,000 100 % 55 % 45% Total 100 % $ 690,000 331,200 358,800 230,880 $ 127,920 100 % 48 % 52 % As shown by these data, net operating income is budgeted at $127,920 for the month and the estimated break-even sales is $444,000. Assume that actual sales for the month total $690,000 as planned. Actual sales by product are: White, $220,800; Fragrant, $276,000; and Loonzain, $193,200.
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
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...
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Question
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.
Transcribed Image Text: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. (Round your answer to the nearest
whole dollar amount.)
Break-even point in dollar sales
< Required 1
Required 2 >
Transcribed Image Text: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:
Percentage of total sales
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Dollar sales to break-even =
White
48 %
Fixed expenses
CM ratio
Required 1 Required 2
$ 331,200
99,360
$ 231,840
Percentage of total sales
White
Fragrant
20%
100 % $ 138,000
30 % 110,400
70% $ 27,600
$230, 880
0.52
%
Complete this question by entering your answers in the tabs below.
= $444,000
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.
%
%
%
As shown by these data, net operating income is budgeted at $127,920 for the month and the estimated break-even sales is
$444,000.
Prepare a contribution format income statement for the month based on the actual sales data.
Gold Star Rice, Ltd.
Contribution Income Statement
Product
Fragrant
%
Product
Assume that actual sales for the month total $690,000 as planned. Actual sales by product are: White, $220,800; Fragrant, $276,000;
and Loonzain, $193,200.
100 % $ 220,800
80 %
121,440
20% $ 99,360
Loonzain
32 %
%
%
%
< Required 1
100 %
55 %
45 %
Loonzain
%
%
%
%
Total
100 %
$ 690,000
331, 200
358,800
230, 880
$ 127,920
Required 2 >
100 %
48 %
52%
Total
%
%
%
%
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