hw 3.3 Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The
ID: 2430633 • Letter: H
Question
hw 3.3
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—Fragrant, White, and Loonzain. Budgeted sales by product and in total for the coming month are shown below:
Fixed expenses
$228,280
As shown by these data, net operating income is budgeted at $140,920 for the month and break even sales at $439,000.
Assume that actual sales for the month total $710,000 as planned. Actual sales by product are: White, $227,200; Fragrant, $284,000; and Loonzain, $198,800.
The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school.
These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $21.00 each with a minimum order of 240 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 50.
Since Hooper’s plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $42.00 each. Hooper would pay the students a commission of $5.00 for each shirt sold.
Product White Fragrant Loonzain Total Percentage of total sales 48% 20% 32% 100% Sales $ 340,800 100% $ 142,000 100% $ 227,200 100% $ 710,000 100% Variable expenses 102,240 30% 113,600 80% 124,960 55% 340,800 48% Contribution margin $ 238,560 70% $ 28,400 20% $ 102,240 45% 369,200 52% Fixed expenses 228,280 Net operating income $ 140,920Explanation / Answer
Please post second question seperately.
1.Compute the Contribution Income Statement G S R Ltd Contribution Income Statement Particulars Product Total White Fragrant Loonzain Percentage of total 32% 40% 28% Sales 227,200 100% 284,000 100% 198,800 100% 710,000 100% Variable Expenses 68,160 30% 227,200 80% 109,340 55% 404,700 57% Contribution Margin 159,040 70% 56,800 20% 89,460 45% 305,300 43% Fixed Expenses 228,280 Net Operating Income 77,020 2.Compute the Breakeven point in sales dollar. Breakeven point in sales dollars = (Fixed Expenses)/Contribution margin = $228,280/0.43 = $530,884.Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.