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 Total

Flight Dynamic Sure Shot

Sales $ $740,000$ $ $260,000$ $ $1,000,000$

CM ratio $61\%78\%?$

Fixed expenses total $$597,000$ 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 $$52,000$ a month, by how much would you expect the monthly net operating income to increase?Olongapo Sports Corporation distributes two premium golf balls$$Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow:

Product Total

Flight Dynamic Sure Shot

Sales $ $740,000$ $ $260,000$ $ $1,000,000$

CM ratio $61\%78\%?$

Fixed expenses total $$597,000$ 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 $$52,000$ a month, by how much would you expect the monthly net operating income to increase?