Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contributionmargin ratios for the two products follow:SalesCM ratioProductFlight Dynamic$ 690,000Fixed expenses total $557,000 per month.60%Sure Shot$ 310,00075%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 $53,000 a month, by how much would you expect the monthly net operating income to increase?Total$ 1,000,000?Complete this question by entering your answers in the tabs below.Flight DynamicAmountRequired 1 Required 2 Required 3Prepare 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).)%Sure ShotAmount%Total CompanyAmount%

Lets understand the basics. Contribution margin is a sales less variable cost of the company. It is…

Answered: S atio Flight Dynamic $ 690,000 xpenses…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Creswell Corporation's fixed monthly expenses are $26,000 and Its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating Income in a month when sales are $84,000? Multiple Choice O $7,600 $50,400 $24.400 $58.000
Sales (12,500 units \times $30 per unit) $375,000 Variable expenses 225,000 Contribution margin 150,000 Fixed expenses 168,000 Net operating loss $ (18,000) Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $53,000 each month. Assume that the company expects to sell 20, 200 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ Total PEM, Incorporated Contribution Income Statement Not Automated Per Unit 0 $ J 168,000 (168,000) c 0 % 0 Total Automated Per Unit 0 $ O 0 % 0
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Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? $6,000 $4,000 $2,000 $0
Please help me with show all calculation thanku
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price Variable expenses $ 60 100% 39 65 Contribution margin $ 21 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? (Do not round intermediate calculations.) Net operating income decreases by
:04 Variable expenses for Alpha Corporation are 40% of sales. What are sales at the break-even point, assuming that fixed expenses total $150,000 per year: Multiple Choice O $250,000 $600,000 $375,000 $150,000
Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit Percent of Sales $ 150 36 100% 24% $ 114 76% Fixed expenses are $1,042,000 per month. The company is currently selling 9,700 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $104,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 330 units. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income
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Last month Dexter Company had a $20,520 loss on sales of $144,000. Fixed costs are $72,360 a month. By how much do sales have to increase for Dexter to break even? Multiple Choice O O O O $51,840 $57,000 $72,360 $92,880
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