Exercise 5-12 (Static) Multiproduct Break-Even Analysis [LO5-9]
Olongapo Sports Corporation distributes two premium golf ballsFlight 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.
2. What is the company's break-even 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?
Exercise 5-12 (Static) Multiproduct Break-Even Analysis [LO5-9] 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. 2. What is the company's break-even 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? Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 1234 should be entered as 12.34).) Fixed expenses total $183,750 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even 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? Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34).) Fixed expenses total $183,750 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even 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? Complete this question by entering your answers in the tabs below. What is the company's break-even point in dollar sales based on the current sales mix? (Do not round intermediate calculations.) Fixed expenses total $183,750 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even 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? Complete this question by entering your answers in the tabs below. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? (Do not round intermediate calculations.)
