Olongapo Sports Corporation distributes two premium golf ballsthe Flight Dynamic and the Sure Shot Monthly sales and the contribution margin ratios for the two products follow Fixed expenses total $ 183,750 per month Required 1 Prepare a contribution format income statement for the company as a who...

1 Flight Dynamic Sure Shot Total Company Amount Amount Amount Sales 150000 100 ...

Olongapo Sports Corporation distributes two premium golf ballsthe Flight Dynamic and the Sure Shot. Monthly sales and

Question:

Olongapo Sports distributes two premium golf balls€”the Flight Dynamic and the Sure Shot. Monthly sales and the ratios for the two products follow:

Olongapo Sports Corporation distributes two premium golf balls€”the Flight Dynamic

Fixed expenses total $ 183,750 per month.

Required:
1. Prepare a contribution format income statement for the company as a whole. Carry computa-tions to one decimal place.
2. Compute the break-even point for the company based on the current sales mix.
3. If sales increase by $ 100,000 a month, by how much would you expect net operating income to increase? What are yourassumptions?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...