Prepare a contribution format income statement

Assignment Help Managerial Accounting

Reference no: EM133502546

Case: 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: Product White Fragrant Loonzain Total Percentage of total sales 48% 20% 32% 100% Sales $ 384,000 100% $ 160,000 100% $ 256,000 100% $ 800,000 100% Variable expenses 115,200 30% 128,000 80% 140,800 55% 384,000 48% Contribution margin $ 268,800 70% $ 32,000 20% $ 115,200 45% 416,000 52% Fixed expenses 224,120 Net operating income $ 191,880 Dollar sales to break-even = Fixed expenses / CM ratio = $224,120 / 0.52 = $431,000 As shown by these data, net operating income is budgeted at $191,880 for the month and the estimated break-even sales is $431,000. Assume that actual sales for the month total $800,000 as planned; however, actual sales by product are: White, $256,000; Fragrant, $320,000; and Loonzain, $224,000.

Required:

Question 1. Prepare 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.

Reference no: EM133502546

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