Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Olongapo Sports Corporation distributes two premium golf ballsFlight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product

Olongapo Sports Corporation distributes two premium golf ballsFlight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow:

Product
Flight Dynamic Sure Shot Total
Sales $ 660,000 $ 340,000 $ 1,000,000
CM ratio 61 % 77 % ?

Fixed expenses total $594,500 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 $53,000 a month, by how much would you expect the monthly net operating income to increase?

  • Required 1

Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

Flight Dynamic Sure Shot Total Company
Amount % Amount % Amount %
Sales % % 0 %
Variable expenses % % 0 %
Contribution margin $0 0.00 % $0 0.00 % 0 0.00 %
Fixed expenses
Net operating income $0 .
  • Required 2

What is the company's break-even point in dollar sales 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

  • Required 3

If sales increase by $53,000 a month, by how much would you expect the monthly net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Net operating income increases by

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

EAuditing Fundamentals Virtual Communication And Remote Auditing

Authors: J.P. Russell, Shauna Wilson

1st Edition

0873898486, 978-0873898485

More Books

Students also viewed these Accounting questions

Question

Effective Delivery Effective

Answered: 1 week ago