Karlik Enterprises distributes a single product whose selling price is $27 per unit and whose variable expense is $21 per unit. The companys monthly fixed expense is $24,000.

2. Calculate the companys break-even point in unit sales.

Olongapo Sports Corporation distributes two premium golf ballsFlight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow:

		Product
		Flight Dynamic			Sure Shot			Total
Sales	$	710,000		$	290,000		$	1,000,000
CM ratio		67	%		79	%		?

Fixed expenses total $562,000 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 $59,000 a month, by how much would you expect the monthly net operating income to increase?

Required Required 2 Required 3 Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Total Company Flight Dynamic Sure Shot Amount Amount Amount % % Required 1 Required 2