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Olongapo Sports Corporation distributes two premium golf balls the Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two
Olongapo Sports Corporation distributes two premium golf balls the Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic $740,000 Sure Shot Sales CM ratio $260,000 $1,000,000 66% 79% Fixed expenses total $565,000 per month. Required 1. Prepare a contribution format income statement for the company as a whole. Round your percentage answers to 2 decimal places (i.e..1234 is considered as 12.34) Olongapo Sports C Flight Dynamic Sure Shot Total Company Amount Amount 2. Compute the break-even point for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Break-even point in sales 3. If sales increase by $53,000 a month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
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