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Okabee Enterprises is the distributor for two product, Model a 100 and Model B 900. Monthly sales and the contribution margin ratio for the two

Okabee Enterprises is the distributor for two product, Model a 100 and Model B 900. Monthly sales and the contribution margin ratio for the two product follow

Total

Model B 900

Model A 100

1,000,000$

300,000$

700,000$

Sales

?

70%

60%

C.M ratio

The company fixed expense total 598,500 per month.

Required;

1- Prepare a contribution format income statement for the company as a whole.

2- Compute the breakeven point for the company based on the current sales mix.

3- If sales increase by 50,000 per month, by how much would you expect net operation income to increase? What are your assumption?

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