Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9] 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 Total Flight Dynamic Sure Shot Sales CM ratio $ 730,000 $ 270,000 $ 1,000,000 63% 77% ? Fixed expenses total $584,500 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 $55,000 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 1 Required 2 Required 3 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).) Flight Dynamic Sure Shot Total Company Amount % Amount % Amount %
Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9] 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 Total Flight Dynamic Sure Shot Sales CM ratio $ 730,000 $ 270,000 $ 1,000,000 63% 77% ? Fixed expenses total $584,500 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 $55,000 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 1 Required 2 Required 3 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).) Flight Dynamic Sure Shot Total Company Amount % Amount % Amount %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9]
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
Total
Sales
CM ratio
Flight Dynamic
$ 730,000
Sure Shot
$ 270,000
$ 1,000,000
63%
77%
?
Fixed expenses total $584,500 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 $55,000 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 1 Required 2
Required 3
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).)
Flight Dynamic
Sure Shot
Total Company
Amount
%
Amount
%
Amount
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5edf4cd9-ab9c-47d0-82b6-b8c19d3a7a4c%2F6636cba2-7fb7-45a8-b6ba-d7c97d2c9560%2Fjw6svd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9]
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
Total
Sales
CM ratio
Flight Dynamic
$ 730,000
Sure Shot
$ 270,000
$ 1,000,000
63%
77%
?
Fixed expenses total $584,500 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 $55,000 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 1 Required 2
Required 3
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).)
Flight Dynamic
Sure Shot
Total Company
Amount
%
Amount
%
Amount
%
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