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
		Flight Dynamic			Sure Shot			Total
Sales	$	690,000		$	310,000		$	1,000,000
CM ratio		68	%		78	%		?

Fixed expenses total $570,000 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 $50,000 a month, by how much would you expect the monthly net operating income to increase?

	Flight Dynamic			Sure Shot			Total Company
	Amount	%		Amount	%		Amount	%
Sales	$690,000	100.00	%	$310,000	100.00	%	1,000,000	100.00	%
Variable expenses			%			%	0		%
Contribution margin	$690,000	100.00	%	$310,000	100.00	%	1,000,000	100.00	%
Fixed expenses
Net operating income							$1,000,000