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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Gold Star Rice, Limited, 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
White
48%
Required 1 Required 2
$ 292,800
87,840
$ 204,960
Percentage of total sales
100%
30%
70%
Complete this question by entering your answers in the tabs below.
White
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.
Product
Fragrant
20%
$ 122,000
97,600
$ 24,400
Prepare a contribution format income statement for the month based on the actual sales data.
%
Fixed expenses
Net operating income
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 $87,880 for the month and the estimated break-even sales is $441,000.
Assume that actual sales for the month total $610,000 as planned, however, actual sales by product are: White, $195,200; Fragrant,
$244,000, and Loonzain, $170,800.
100%
80%
20%
Gold Star Rice, Limited
Contribution Income Statement
Product
Fragrant
%
%
Loonzain
%
Loonzain
32%
$ 195,200
107,360
$ 87,840
%
100%
55%
45%
Total
%
Total
100%
$ 610,000
292,800
$317,200
229,320
$ 87,880
%
100%
48%
52%
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