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EXERCISE 3-14 Multiproduct Break-Even Analysis [LO 3-9] Okabee Enterprises is the distributor for two products, Model A100 and Model B900. Monthly sales and the contribution
EXERCISE 3-14 Multiproduct Break-Even Analysis [LO 3-9] Okabee Enterprises is the distributor for two products, Model A100 and Model B900. Monthly sales and the contribution margin ratios for the two products follow: Product Model A100 Model B900 Total Sales Contribution margin ratio. $700.000 60% $300.000 70% $1,000,000 ? The company's fixed expenses total $598,500 per month. Required: Prepare a contribution format income statement for the company as a whole. Compute the break-even point for the company based on the current sales mix. If sales increase by $50,000 per month, by how much would you expect net operating income to increase? What are your assumptions
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