Question
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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