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EXERCISE 5-12 Multiproduct Break-Even Analysis Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for
EXERCISE 5-12 Multiproduct Break-Even Analysis Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and 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 whole. Carry computations to one decimal place. 2. What is the company's breakeven point in dollar sales based on the current sales mix? 3. If sales increase by $100.000 a month, by how much would you expect the monthly net operating income to increase? What are your assumptions? Page 223
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