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  $  660,000  $  340,000  $  1,000,000  
CM ratio  61  %  77  %  ?  
Fixed expenses total $594,500 per month.
Required:
1. Prepare a contribution format income statement for the company as a whole.
2. What is the company's breakeven point in dollar sales based on the current sales mix?
3. If sales increase by $53,000 a month, by how much would you expect the monthly net operating income to increase?
Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

What is the company's breakeven point in dollar sales based on the current sales mix? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

If sales increase by $53,000 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.)

Solutions:
Requirement 1
Requirement 2
Requirement 3
Net operating income increases by  $ 35713 
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