Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9] 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 Flight Dynamic Sales CM ratio $ 740,000 Sure Shot $ 260,000 63% 77% Total $1,000,000 ? Fixed expenses total $587,000 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 $59,000 a month, by how much would you expect the monthly net operating income to increase?
Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9] 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 Flight Dynamic Sales CM ratio $ 740,000 Sure Shot $ 260,000 63% 77% Total $1,000,000 ? Fixed expenses total $587,000 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 $59,000 a month, by how much would you expect the monthly net operating income to increase?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9]
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
Flight
Dynamic
Sales
CM ratio
$ 740,000
Sure Shot
$260,000
Total
$1,000,000
63%
77%
?
Fixed expenses total $587,000 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 $59,000 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
mount
Sure Shot
%
Amount
%
Total Company
Amount
%
<Required 1
Required 2 >
< Prev
6 of 9.
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7cac9678-2996-413a-884c-ba79e8efe79d%2Fb020ac98-07f3-4ea3-9e63-b08cf4ce73f8%2Fiodix2v_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9]
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
Flight
Dynamic
Sales
CM ratio
$ 740,000
Sure Shot
$260,000
Total
$1,000,000
63%
77%
?
Fixed expenses total $587,000 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 $59,000 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
mount
Sure Shot
%
Amount
%
Total Company
Amount
%
<Required 1
Required 2 >
< Prev
6 of 9.
Next >
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