Question
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
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 Sales CM ratio Product Total Flight Dynamic $720,000 Sure Shot $ 280,000 $1,000,000 63% 79% Fixed expenses total $579,500 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 $46,000 a month, by how much would you expect the monthly net operating income to Increase?
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