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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 | $ 710,000 | $ 290,000 | $ 1,000,000 |
CM ratio | 69% | 75% | ? |
Fixed expenses total $599,000 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 $46,000 a month, by how much would you expect the monthly net operating income to increase?
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).) Sure Shot Flight Dynamic Amount % Total Company Amount % Amount % What is the company's break-even point in dollar sales based on the current sales mix? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Break-even point in dollar sales If sales increase by $46,000 a month, by how much would you expect the monthly net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net operating income increases byStep by Step Solution
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