Reference no: EM132552399

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%         379,200 48%

Contribution margin                        $265,440 70%          $31,600 20%         $113,760 45%           410,800 52%

Fixed expenses 233,480

Net operating income $177,320

Dollar sales to break-even=Fixed expenses=$233,480= $449,000CM ratio0.52

As shown by these data, net operating income is budgeted at $177,320 for the month and the estimated break-even sales is $449,000.

Assume that actual sales for the month total $790,000 as planned. Actual sales by product are: White, $252,800; Fragrant, $316,000; and Loonzain, $221,200.

Required:

Question 1. Make a contribution format income statement for the month based on the actual sales data.

Question 2. Compute the break-even point in dollar sales for the month based on your actual data.