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 $ 748,000 Sales CM ratio Fixed expenses total $558,500 per month. 68% Sure Shot $ 260,000 78% Total $1,000,000 2 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 $43,000 a month, by how much would you expect the monthly net operating income to increase?
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 $ 748,000 Sales CM ratio Fixed expenses total $558,500 per month. 68% Sure Shot $ 260,000 78% Total $1,000,000 2 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 $43,000 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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Transcribed Image Text: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
$ 740,000
68%
Sales
CMH ratio
Fixed expenses total $558,500 per month.
Sure Shot
$ 260,000
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 $43,000 a month, by how much would you expect the monthly net operating income to increase?
78%
Complete this question by entering your answers in the tabs below.
Flight Dynamic
Amount
Total
$1,000,000
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).)
Required 1
Sure Shot
Amount
%
Required 2 >
Total Company
Amount
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