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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: Sales CM ratio Product Flight Dynamic $ 710,000 Sure Shot $ 290,000 Total $ 1,000,000 61% 80% ? Fixed expenses total $568,000 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 $59,000 a month, by how much would you expect the monthly net operating income to 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. (Round your percentage answers to 2 decimal places (1.e. 0.1234 should be entered as 12.34).) Sales Variable expenses Contribution margin Flight Dynamic Amount $ 710,000 % Sure Shot Amount % Total Company Amount % 100.00 $290,000 276,900 39.00 $ 433,200 100.00 $1,000,000 100.00 20.00
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