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

$ $150,000$

$ $250,000$

$ $400,000$

CM ratio

$80\%$

$36\%$

$?$

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?