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 $ 660,000 $ 340,000 $1,000,000 CM ratio 64% 75% ? question mark Fixed expenses total $558,000 per month. Required: Prepare a contribution format income statement for the company as a whole. What is the company's break- even point in dollar sales based on the current sales mix? If sales increase by $ 47,000 a month, by how much would monthly net operating income 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 Total Flight Dynamic Sure Shot Sales $ 660,000 $ 340,000 $1,000,000 CM ratio 64% 75% ? question mark Fixed expenses total $558,000 per month. Required: Prepare a contribution format income statement for the company as a whole. What is the company's break- even point in dollar sales based on the current sales mix? If sales increase by $ 47,000 a month, by how much would monthly net operating income increase?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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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 $ 660,000 $
340,000 $1,000,000 CM ratio
64% 75% ? question mark Fixed
expenses total $558, 000 per month.
Required: Prepare a contribution format
income statement for the company as a
whole. What is the company's break-
even point in dollar sales based on the
current sales mix? If sales increase by $
47,000 a month, by how much would
monthly net operating income increase?

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