Required information

[The following information applies to the questions displayed below.]

-1---Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Sales	$	95,000
Variable expenses		57,000
Contribution margin		38,000
Fixed expenses		31,920
Net operating income	$	6,080

15. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $31,920 and the total fixed expenses are $57,000. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)

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-2---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	$	720,000		$	280,000		$	1,000,000
CM ratio		63	%		76	%		?

Fixed expenses total $596,500 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 $42,000 a month, by how much would you expect the monthly net operating income to increase?