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 | $ 710,000 | $ 290,000 | $ 1,000,000 |
| CM ratio | 62% | 73% | ? |
Fixed expenses total $590,000 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 $51,000 a month, by how much would you expect the monthly net operating income to increase?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Government And Not For Profit Accounting Concepts And Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese
9th Edition
1119803896, 978-1119803898
