Question

Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow:

		Product
		Flight Dynamic			Sure Shot			Total
Sales	$	690,000		$	310,000		$	1,000,000
CM ratio		60	%		80	%		?

Fixed expenses total $593,000 per month.

Required:

3. If sales increase by $50,000 a month, by how much would you expect the monthly net operating income to increase?

Complete this question by entering your answers in the tabs below.

If sales increase by $50,000 a month, by how much would you expect the monthly net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Net operating income increases by

Answer 1