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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: Product Flight Dynamic Sure Shot Sales CM ratio $ 660,000 $ 340,000 65% 77% Total $ 1,000,000 ? Fixed expenses total $586,500 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 $57,000 a month, by how much would you expect the monthly net operating income to increase? Answer is not complete. 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. (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 % $660,000 100.00 % 250,800 38.00 $ 409,200 62.00 $340,000 % 74,800 % $265,200 100.00 % 22.00% 78.00 % 1,000,000 325,600 674,400 100.00 32.56 % % 67.44 % 561,000 $ 113,400 < Required 1 Required 2 >
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