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	Total
Flight Dynamic	Sure Shot
Sales	$ 700,000	$ 300,000	$ 1,000,000
CM ratio	66%	76%	?question mark

Fixed expenses total $596,500 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 $45,000 a month, by how much would monthly net operating income increase?

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Prepare a contribution format income statement for the company as a whole.

Note: 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	$700,000	100.00	$300,000	100.00	$1,000,000	100.00
Variable expenses	238,000	34.00	72,000	24.00	310,000	31.00
Contribution margin	$462,000	66.00	$228,000	76.00	690,000	69.00
Fixed expenses
Net operating income

What is the company's break-even point in dollar sales based on the current sales mix?

Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.

	Break-even point in dollar sales

If sales increase by $45,000 a month, by how much would monthly net operating income increase?

Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.

	Net operating income increases by