Olongapo Sports Corporation distributes two premium golf balls-the Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic Sure Shot $740,000 Total Sales CM ratio $260,000 $1,000,000 72% 67% Fixed expenses total $569,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. Round your percentage answers to 2 decimal places (i.e. .1234 is considered as 12.34). Answer is complete but not entirely correct. Olongapo Sports Corporation Flight Dynamic Total Company Sure Shot Amount % Amount Amount % s 260,000 Sales $ 740,000 244,200 s 495,800 % 100.00 100.00 % 1,000,000 100.00 % Variable expenses 33.00 % % 72,800 28.00 317,000 100.00 % Contribution margin Fixed expenses % 67.00 % 187,200 72.00 683,000 0.00 % 569,000 Net operating income $ 114,000 2 Compute the break-even point for the company based on the current sales mix. (Do not round intermediate caleulations. Round your answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Dreak-even point in sales 56,900 2. Compute the break-even point for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Break-even point in 56,900 sales 3. If sales increase by $45,000 a month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net operating income increases by Explanation: 1 $1,000,000) = 69.70% Total contribution margin percentage: ($697,000 2. The break-even point for the company as a whole is: Fixed expenses Overall CM ratio Dollar sales to break even $572,500 .6970 = $821,377 3. The additional contribution margin from the additional sales is computed as follows: $59,000 x 69.70 % CM ratio $41,123