Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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: Product

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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: Product Flight Sure Dynamic Shot Total Sales $ 740,000 $ 260,000 $ 1,000,000 CM ratio 704 711 Fixed expenses total $585,500 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 $54,000 a month, by how much would you expect the monthly net operating income to increase? 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 pla should be entered as 12.34).) Flight Dynamic Amount % % Sure Shot Amount % % % $ 0 0.00 % Total Company Amount % % 0 % 0.00 % 0 % $ 0 0.001% 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If sales increase by $54,000 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 by

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Courageous Auditing Beyond Compliance Towards Being A Catalyst For Change

Authors: Kathy Rees

1st Edition

0648958108, 978-0648958109

More Books

Students also viewed these Accounting questions