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 | |||||||||
Flight Dynamic | Sure Shot | Total | |||||||
Sales | $ | 730,000 | $ | 270,000 | $ | 1,000,000 | |||
CM ratio | 64 | % | 75 | % | ? | ||||
Fixed expenses total $557,500 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 $51,000 a month, by how much would you expect the monthly net operating income to increase?
P1.
p2.
break-even point in dollar sales
p3.
Net operating income increases by
Sure Shot Flight Dynamic Amount % Total Company Amount % Amount % % % % % % % % % %
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