EXERCISE 5-12 Multiproduct Break-Even Analysis [LO5-9) Olongapo Sports Corporation distributes two premium golf balls-the Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic Sure Shot $150,000 $250,000 80% 36% Total $400,000 Sales ......... CM ratio ...... 26042 Fixed expenses total $183,750 per month. Cost-Volume-Profit Relationships Required: contribution format income statement for the company as a whole. Carry computa- 1. Prepare a contribution tions to one decimal place. Compute the break- If sales increase by $1 2 3. te the break-even point for the company based on the current sales mix. Ins increase by $100,000 a month, by how much would you expect net operating income to increase? What are your assumptions