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Q3: Tralynna Products distributes two premium kid chairs-Hayden Recliner and Hadley Rocking. Monthly sales and the contribution margin ratios for the two products follow:
Q3: Tralynna Products distributes two premium kid chairs-Hayden Recliner and Hadley Rocking. Monthly sales and the contribution margin ratios for the two products follow: Sales Hayden Recliner $600,000 CM ratio 75% Hadley Rocking $300,000 45% Total $900,000 ? Fixed expenses total $360,750 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increased by $120,000 a month, by how much would you expect the monthly net operating income to increase?
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Contribution Format Income Statement Tralynna Products Contribution Format Income Statement For the Month Ended Date Sales Hayden Recliner 600000 Hadl...Get Instant Access to Expert-Tailored Solutions
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