alll 40% 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 Dynanic $ 660,e00 64 Sure Shot Total Sales ON ratio $ 340,000 $ 1,000, e00 79 A Fixed expenses total $581,000 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 $52,000 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.
alll 40% 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 Dynanic $ 660,e00 64 Sure Shot Total Sales ON ratio $ 340,000 $ 1,000, e00 79 A Fixed expenses total $581,000 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 $52,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10:19 M
OX 40% &
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
oynaee
$ 660,6
64
Sure Shot
S 340, 000 $ 1,000,e00
Total
Sales
79
ON ratio
Fixed expenses total $581,000 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 $52,000 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.
Required 2
Required 3
Required 1
What is the company's break-even point in dollar sales based on the current sales mix? (Do not round intermediate
calculations. Round your answer to the nearest whole dollar amount.)
eak-even point in dollar sales
( Required1
Required 3>
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