Tralynna Products distributes two premium kid chairsHayden Recliner and Hadley Rocking. Monthly sales and the contribution margin ratios for the two products follow:

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 companys 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?

Hayden Recliner Hadley Rocking Total Sales $600,000 $300,000 $900,000 CM ratio 75% 45%