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Exercise 6-12 (Static) Multiproduct Break-Even Analysis [LO6-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin
Exercise 6-12 (Static) Multiproduct Break-Even Analysis [LO6-9] 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: Product Flight Dynamic $ 150,000 Required 1 Sure Shot $ 250,000 36% Sales CM ratio 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? 80% Total $ 400,000 ? Complete this question by entering your answers in the tabs below. Required 2 Required 3
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