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 $ 670,000 $330,000 $1,000,000

CM ratio 62% 72% ?

Fixed expenses total $591,000 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?