Home / Questions / Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows thr

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows thr

"Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—Fragrant, White, and Loonzain. (The currency in Thailand is the baht, which is denoted by B.) 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 B 150,000 100% B 390,000 100% B 210,000 100% B 750,000 100%
Variable expenses 108,000 72% 78,000 20% 84,000 40% 270,000 36%
Contribution margin B 42,000 28% B 312,000 80% B 126,000 60% 480,000 64%
Fixed expenses 449,280
Net operating income B 30,720

Dollar sales to break even= fixed expenses/ CM ratio= B449,280/0.64=B702,000

As shown by these data, net operating income is budgeted at B30,720 for the month and break-even sales at B702,000.

Assume that actual sales for the month total B750,000 as planned. Actual sales by product are: White, B300,000; Fragrant, B180,000; and Loonzain, B270,000.

Requirement 1:
Prepare a contribution format income statement for the month based on actual sales data. Present the income statement in the format shown on the prior page.
Requirement 2:
Compute the break-even point in sales Baht for the month, based on your actual data.
Requirement 3;
Considering the fact that the company met its B750,000 sales budget on your actual data. dent is shocked at the results shown on your income statement in (1)above. Prepare a brief memo for the president explaining why both the operating results and the break-even point in sales dollars are different from what was budgeted.
"

Nov 08 2017 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions

Over the last 30 years employee rights have narrowed as federal and state governments enact more laws that favor employers

Over the last 30 years, employee rights have narrowed as federal and state governments enact more laws that favor employers.96) Employee statutory rights are those rights...
Mar 13 2020
An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually

An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to gro...
Jul 14 2021
economic factors What economic factors affect income distribution in the US What non-economic factors affect income distribution in the US How can rapid income mobility be achieved

economic factors (A.) What economic factors affect income distribution in the US? (B.) What non-economic factors affect income distribution in the US? (C.) How can rapid ...
Apr 23 2020
Steam at 160 bar and 480oC enters a turbine operating at steady state with a volumetric flow rate of 800m min Eighteen percent of the entering mass flow exits at 5 bar 240oC with a velocity of

Steam at 160 bar and 480oC enters a turbine operating at steady state with a volumetric flow rate of 800m3/min.Eighteen percent of the entering mass flow exits at 5 bar, ...
May 05 2020
W. Ibr Engineers 12. Tou are provided a chart representing the cash flows expected from a coffee ...

Tou are provided a chart representing the cash flows expected from a coffee a retail store. You remember from your finance course that only incrementa included in the cha...
Aug 18 2020
Identify three good that generates negative externalities.

Identify three good that generates negative externalities.
May 05 2021
Which is not a stakeholder customers Functional managers Business partners Sponsor

Which is not a stakeholder?customersFunctional managersBusiness partnersSponsor
Aug 23 2020
Draw the product of each reaction below, clearly showing any stereochemistry. Ph B(OH)2 Pdº catalyst Na2CO3 Product A a Br Br Product B (b) Explain why product B in part (a), example

Draw the product of each reaction below, clearly showing any stereochemistry. (5 marks) Ph B(OH)2 Pdº catalyst Na2CO3 Product A a Br Br Product B (b) Explain why product ...
Jun 20 2021
Which of the following characteristics is generally considered an illegal basis for discrimination? Select one: a. Attractiveness b. Degree of physical fitness c. Race d. Use of tobacco Please

Which of the following characteristics is generally considered an illegal basis for discrimination?Select one:a. Attractivenessb. Degree of physical fitnessc. Raced. Use ...
Apr 28 2021
Mike and Phil are Phil are partners in a general partnership. Phil signs numerous contracts on behalf of the partnership with local businesses valued at almost $500,000 dollars

Mike and Phil are Phil are partners in a general partnership. Phil signs numerous contracts on behalf of the partnership with local businesses valued at almost $500,000 d...
Jun 30 2021

Create an Account

Sign in to your account

Forgot Your Password ?

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows thr

Answer (UnSolved)

Related Questions

Over the last 30 years employee rights have narrowed as federal and state governments enact more laws that favor employers

An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually

economic factors What economic factors affect income distribution in the US What non-economic factors affect income distribution in the US How can rapid income mobility be achieved

Steam at 160 bar and 480oC enters a turbine operating at steady state with a volumetric flow rate of 800m min Eighteen percent of the entering mass flow exits at 5 bar 240oC with a velocity of

W. Ibr Engineers 12. Tou are provided a chart representing the cash flows expected from a coffee ...

Identify three good that generates negative externalities.

Which is not a stakeholder customers Functional managers Business partners Sponsor

Draw the product of each reaction below, clearly showing any stereochemistry. Ph B(OH)2 Pdº catalyst Na2CO3 Product A a Br Br Product B (b) Explain why product B in part (a), example

Which of the following characteristics is generally considered an illegal basis for discrimination? Select one: a. Attractiveness b. Degree of physical fitness c. Race d. Use of tobacco Please

Mike and Phil are Phil are partners in a general partnership. Phil signs numerous contracts on behalf of the partnership with local businesses valued at almost $500,000 dollars

Subject Categories