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 $ 670,000 638 Sales CM ratio Fixed expenses total $589,000 per month. Sure Shot $ 330,000 74% Total $1,000,000 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 $52,000 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 $ 670,000 638 Sales CM ratio Fixed expenses total $589,000 per month. Sure Shot $ 330,000 74% Total $1,000,000 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 $52,000 a month, by how much would you expect the monthly net operating income to increase?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

See similar textbooks

Related questions

Q: A chart of accounts would best be coded using a(n) ______________ coding scheme. a. alphabetic b.…

A: Chart of Accounts: Chart of Accounts shows all the ledgers (expenses, revenue, assets, etc) and…

Q: Define terminal date

A: Answer: In finance, horizon date is called as terminal value. It is the date from which individual…

Q: Define Assigning.

A: Assigning is a process of assignment. Assignment means a transfer of a right to receive a…

Q: Define and expain

A: Detailed Explanation of Nursing1. Patient Care:Direct Care: Nurses provide hands-on care to…

Q: Show how to insert formula in excel

A: Perpetuity: It is a stream of cash flow that is presumed to continue for an indefinite period.

Q: Having a probllem with T -Accts . Please help

A: The t-accounts are as follows:

Q: The following information is available for Swifty Corporation for the year ended December 31, 2022:…

A: The question is based on the concept of Financial Accounting. Income Statement is the statement that…

Q: The following balances were taken from the books of Crane Corp. on December 31, 2025. Interest…

A: Income Statement is the financial statement that records all the income and expenses of the business…

Q: Define red-line method

A: Answer: A red-line strategy is nothing but a tactic used for controlling the stock, as it is the…

Q: Any device used to provide the results of processing data is a(n) ________ device. Group of answer…

A: Processing Data: In it, all the information is processed in a systematic way to provide a useful…

Q: How should documents removed from workpapers be treated?

A: Workpaper is the most important part of the audit. It contains all the documentation regarding the…

Q: Prepare the entry for the issuance under the following assumptions. (List all debit entries before…

A: The journal entries are prepared to record the transactions on regular basis. The cash received in…

Q: Part C and Part D are incorrect. Please help.

A: Dividend per share = Dividend declared to common stockholders / Number of common shares outstanding…

Q: What is the effect of not returning all client-provided documents upon request?

A: If an auditor is not returning all client provided documents upon request, then this act is an…

Q: What is meant by Authorized and issued captial?

A: Meaning of Authorised capital stock:Authorised stock refers to the maxinum number of preferred…

Q: What are roll-forward procedures? Provide some examples

A: Roll-Forward Procedure: Auditors perform procedure to draw out the conclusion from an interim date…

Q: Please see images

A: Inventory is the goods and material a business holds for resale. LIFO:- As the name suggests Last…

Q: Oriole Company expects to produce 1,260,000 units of product XX in 2022. Monthly production is…

A: Variable Cost :— It is the cost that changes with change in activity of cost driver. Variable cost…

Q: Which of the following is true of the correcting entry method? a.It cannot be used to correct a…

A: A correcting entry is a journal entry used to rectify the net effect of an error.

Q: Explain Change in Reporting Entity.

A: A reporting entity is an entity whose general-purpose financial report is used by its users to have…

Q: please see attached problem

A: There are tax consequences lied on the transfer of property to other person. This liability would be…

Q: Discuss some of the problems associated with general ledger systems that do not have data coding…

A: Ledgers: The transactions after being posted in journal and journal vouchers are shown in the…

Q: Write me a human paragraph without using Al about what a memorandoms of understanding is and how it…

A: A Memorandum of Understanding (MoU) is a formal agreement between two or more parties. It is not…

Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Please do not give image format

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:
Sales
CM ratio.
Fixed expenses total $589,000 per month.
Product
Flight Dynamic
$ 670,000
63%
Sales
Contribution margin
Fixed expenses
Net operating income
Sure Shot
$ 330,000
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 $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.
74%
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
(.e. 0.1234 should be entered as 12.34).)
Total
$ 1,000,000
Flight Dynamic
Amount
$ 422,100
Total Company
%
Amount
%
Amount
%
$ 670,000 100.00 $ 330,000 100.00 $1,000,000 100.00
Sure Shot
63.00 $ 244,200
74.00
Required 2 >
666,300 17.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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: Sales CM ratio Product Flight Dynamic $ 650,000 68% Fixed expenses total $587,500 per month. Sure Shot $ 350,000 76% Total $ 1,000,000 ? 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 $56,000 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% 77% ? Fixed expenses total $572,500 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 $58,000 a month, by how much would you expect the monthly net operating income to increase?
Olongapo Sports Corporation distributes two premium golf —Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Total Flight Dynamic Sure Shot Sales $ 720,000 $ 280,000 $ 1,000,000 CM ratio 67% 72% ? Fixed expenses total $570,500 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 $48,000 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: Sales CM ratio Product Total Flight Dynamic $ 660,000 Sure Shot $ 340,000 $ 1,000,000 67% 79% Fixed expenses total $575,500 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 $60,000 a month, by how much would monthly net operating income 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. Note: Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34). Flight Dynamic Sure Shot Amount % Amount % Total Company Amount %
Cullumber Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Net income $ (b) Shocker Net Income Tingler $300,000 $500,000 Tingler Net Income $ Total Net Income (c) Why or why not? Compute current net income for Cullumber Company. ta Net income would 151,400 148,600 $ 119,400 S $29,200 Fixed expenses consist of $298,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,800 (Shocker), and $34,300 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Shocker 197,000 303,000 229,800 $73,200 Compute net income by product line and in total for…
i need full details solution with explanation......
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 Sure Shot Total Sales ................................................. $150,000 $250,000 $400,000 CM ratio ........................................ 80% 36% ? Fixed expenses total $183,750 per month.Required:1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.2. What is the company’s break-even point in dollar sales based on the current sales mix?3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? What are your assumptions?
Answer full question please.
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 $ 650,000 $ 350,000 $ 1,000,000 CM ratio 66% 74% ? Fixed expenses total $575,000 per month. 2. What is the company's break-even point in dollar sales based on the current sales mix?
JKL Inc. markets two computer games: Game 101 and Game 102. A contribution format income statement for a recent month for the two games appears below: 101 102Sales P30,000 P70,000Variable expenses. 20,000 50,000 Required:a. Compute the overall contribution margin (CM) ratio for the company. b. Compute the overall break-even point for the company in sales dollars if fixed cost is P15,000. c. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.
Blossom Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarter's operating profits, by product, and for the company as a whole, were as follows: Square Round Total Sales revenue $11,000 $6,600 $17,600 Variable expenses 4,400 2,900 7,300 Contribution margin 6,600 3,700 10,300 Fixed expenses 2,750 4,200 6,950 Operating income $ 3,850 $(500) $ 3,350 Forty percent of the Round Game's fixed costs could have been avoided if the game had not been produced or sold. If the Round Game had been discontinued before the last quarter, what would operating income have been for the company as a whole? Operating income without round $
Crane Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarter's operating profits, by product, and for the company as a whole, were as follows: Square Round Total Sales revenue $11,000 $6,860 $17,860 Variable expenses 5,000 2,910 7,910 Contribution margin 6,000 3,950 9,950 Fixed expenses 2,750 4,200 6,950 Operating income $ 3,250 $(250) $ 3,000 Forty percent of the Round Game's fixed costs could have been avoided if the game had not been produced or sold. If the Round Game had been discontinued before the last quarter, what would operating income have been for the company as a whole? Operating income without round $