Question
In: Accounting
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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 | $ | 316,800 | 100 | % | $ | 132,000 | 100 | % | $ | 211,200 | 100 | % | $ | 660,000 | 100 | % | ||||
| Variable expenses | 95,040 | 30 | % | 105,600 | 80 | % | 116,160 | 55 | % | 316,800 | 48 | % | ||||||||
| Contribution margin | $ | 221,760 | 70 | % | $ | 26,400 | 20 | % | $ | 95,040 | 45 | % | 343,200 | 52 | % | |||||
| Fixed expenses | 232,960 | |||||||||||||||||||
| Net operating income | $ | 110,240 | ||||||||||||||||||
| Dollar sales to break-even | = | Fixed expenses | = | $232,960 | = $448,000 |
| CM ratio | 0.52 |
As shown by these data, net operating income is budgeted at $110,240 for the month and the estimated break-even sales is $448,000.
Assume that actual sales for the month total $660,000 as planned; however, actual sales by product are: White, $211,200; Fragrant, $264,000; and Loonzain, $184,800.
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
Prepare a contribution format income statement for the month based on the actual sales data.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
|
Solutions
Expert Solution
| 1 | ||||||||
| White | Fragrant | Loonzain | Total | |||||
| Percentage of total sales | 32% | 40% | 28% | 100% | ||||
| Sales | 211200 | 100% | 264000 | 100% | 184800 | 100% | 660000 | 100% |
| Variable expenses | 63360 | 30% | 211200 | 80% | 101640 | 55% | 376200 | 57% |
| Contribution margin | 147840 | 70% | 52800 | 20% | 83160 | 45% | 283800 | 43% |
| Fixed expenses | 232960 | |||||||
| Net operating income | 50840 | |||||||
| 2 | ||||||||
| Break-even point in dollar sales | 541767 | =232960/43% | ||||||
ekkarill92 answered 1 year agoRelated Solutions
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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
$
364,800
100
%
$
152,000
100
%
$
243,200
100
%
$
760,000
100
%
Variable expenses
109,440
30
%
121,600
80
%
133,760
55
%...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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
$
292,800
100
%
$
122,000
100
%
$
195,200
100
%
$
610,000
100
%
Variable expenses
87,840
30
%
97,600
80
%
107,360
55
%...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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
20
%
52
%
28
%
100
%
Sales
$
150,000
100
%
$
390,000
100
%
$
210,000
100
%
$
750,000
100
%
Variable expenses
108,000
72
%
78,000
20
%
84,000
40
%...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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
$
336,000
100
%
$
140,000
100
%
$
224,000
100
%
$
700,000
100
%
Variable expenses
100,800
30
%
112,000
80
%
123,200
55
%...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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
$
350,400
100
%
$
146,000
100
%
$
233,600
100
%
$
730,000
100
%
Variable expenses
105,120
30
%
116,800
80
%
128,480
55
%...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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 $ 321,600 100
% $ 134,000 100 % $ 214,400 100 % $ 670,000 100 % Variable expenses
96,480 30 % 107,200 80 % 117,920 55 %...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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
$
379,200
100
%
$
158,000
100
%
$
252,800
100
%
$
790,000
100
%
Variable expenses
113,760
30
%
126,400
80
%
139,040
55
%...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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 $ 379,200 100
% $ 158,000 100 % $ 252,800 100 % $ 790,000 100 % Variable expenses
113,760 30 % 126,400 80 % 139,040 55 %...
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia
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
$
3,40,800
100%
$
1,42,000
100%
$
2,27,200
100%
$
710,000
100%...
Problem 5-21 Sales Mix; Multiproduct Break-Even Analysis [LO5-9] Gold Star Rice, Ltd., of Thailand exports Thai...
Problem 5-21 Sales Mix; Multiproduct Break-Even Analysis
[LO5-9]
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
$
331,200
100
%
$
138,000
100
%
$
220,800
100
%
$
690,000
100
%
Variable expenses
99,360...
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