Question
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 | Total | ||
|---|---|---|---|
| Flight Dynamic | Sure Shot | ||
| Sales | $ 740,000 | $ 260,000 | $ 1,000,000 |
| CM ratio | 65% | 79% | ? |
Fixed expenses total $584,000 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 $55,000 a month, by how much would you expect the monthly net operating income to increase?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940
