Gold Star Rice Ltd of Thailand exports Thai rice throughout

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 48 % Loonzain Total 100 % Fragrant Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income 100 % $600,000 288,000 312,000 228,800 $ 83,200 $288,000 86,400 s 201,600 100 % $120,000 96,000 70 % $ 24,000 100% $192,000 105, 600 20% $ 86,400 100 % 48 % 30 % 80 % 55 % 45 % 52 % Fixed expenses CM ratio $228,800 0.52 - $440,000 Dollar sales to break-even - As shown by these data, net operating income is budgeted at $83,200 for the month and the estimated break-even sales is $440,000 Assume that actual sales for the month total $600,000 as planned. Actual sales by product are: White, $192,000; Fragrant, $240,000; and Loonzain, $168,000 Prepare a contribution format income statement for the month based on the actual sales data Gold Star Rice, Ltd Contribution Income Statement Product Fragrant White Loonzain Total Percentage of total sales Compute the break-even point in dollar sales for the month based on your actual data. (Round your answer to the nearest whole dollar amount.) Break-even point in dollar sales

Solution

Contribution format income statement :

Break even point in dollar sales = 228800/.43 = $532093

Contribution income statement
Product
	White	Fragrant	Loonzain	Total
Percentage of total sales	32	%		40	%		28	%		100	%
Sales revenue	192000	100	%	240000	100	%	168000	100	%	600000	100	%
Variable expense	57600	30	%	192000	80	%	92400	55	%	342000	57	%
Contribution margin	134400	70	%	48000	20	%	75600	45	%	258000	43	%
Fixed cost										228800
Net operating income										29200