Product Flight Dynamic $ 710,000 63% Sales CM ratio Fixed expenses total $583,500 per month. Sure Shot $ 290,000 75% Total $ 1,000,000 7 Required: m. 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 monthly net operating income increase? Complete this question by entering your answers in the tabs below.
Product Flight Dynamic $ 710,000 63% Sales CM ratio Fixed expenses total $583,500 per month. Sure Shot $ 290,000 75% Total $ 1,000,000 7 Required: m. 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 monthly net operating income increase? Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:8
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:
4
points
eBook
Sales
CM ratio
Fixed expenses total $583.500 per month.
Flight Dynamic
$ 710,000
63%
Required 11 Required 2
Product
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 monthly net operating income increase?
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Sure Shot
$ 290,000
75%
Complete this question by entering your answers in the tabs below.
Required 3
Total
$ 1,000,000
Prepare a contribution format income statement for the company as a whole.
Note: Round your percentage answers to 2 decimal places (1.e. 0.1234 should be entered as 12.34).
Flight Dynamic
Amount
< Rewired 1
Sure Shot
Amount
%
%
$ 710,000 100.00 $ 290,000 100.00 $ 1,000,000 100.00
Total Company
Amount
Required 2 >
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