Solution-Compute the break-even point in dollar sales for

Compute the break-even point in dollar sales for the month

Reference no: EM132158636

Question - 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						Total
	White		Fragrant		Loonzain		Total
Percentage of total sales	48%		20%		32%		100%
Sales	$345,600	100%	$144,000	$100%	$230,400	100%	$720,000	100%
Variable expenses	103,680	30%	115,200	80%	126,720	55%	345,600	48%
Contribution margin	$241,920	70%	$28,800	20%	$103,680	45%	374,400	52%
Fixed expenses							227,240
Net operating income							$147,160

Dollar sales to break-even = Fixed expenses/CM ratio = $227,240/0.52 = $437,000

As shown by these data, net operating income is budgeted at $147,160 for the month and the estimated break-even sales is $437,000.

Assume that actual sales for the month total $720,000 as planned. Actual sales by product are: White, $230,400; Fragrant, $288,000; and Loonzain, $201,600.

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.

Reference no: EM132158636

Questions Cloud

What ways is it impacting organizations : What is social computing and in what ways is it impacting organizations? Where do you think social computing is leading us? What changes

Prepare list of responsibilities for each role : Based on the role given to you, discuss your responsibilities along with the responsibilities of the other role holders, and prepare list of responsibilities

Discuss a moment or experience in your life : Consider the importance of visuals in connecting with an audience. Discuss a moment or experience in your life when a picture, drawing or other visual.

How to make a piece of mips assembly code : How to make a piece of MIPS assembly code that counts number of 1s in the binary representation of the value stored in $t0 and saves the result in $t1?

Compute the break-even point in dollar sales for the month : Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. Compute the break-even point in dollar sales for the month based on your actual data

What are the main insights or new understandings : What are the main insights or new understandings that you gained from the application of SSM to the case study?

Conduct an internet search of genetic engineering : Conduct an internet search to find an interesting example of genetic engineering. Then, summarize what you discovered in about 200 words.

Print screen the content of created file and add : Copy content of File2.dat to File3.txt (convert back to text). Print screen the content of created file and add it to your submission.

What do you think of the authors concluding statement : What do you think of the authors' concluding statement, "..while we might expect that the dogs should be highly tuned to the smell of conspecifics.

User Account

All Pages

Compute the break-even point in dollar sales for the month

Reference no: EM132158636

Reference no: EM132158636

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT