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$ 650,00068%Fixed expenses total $587,500 per month.Sure Shot$ 350,00076%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?

Break-even sales are the dollar amount of revenue at which a business earns a profit of zero i.e.No…

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 $ 650,000 68% Sure Shot $ 350,000 76% Total $ 1,000,000 ? Sales CM ratio Fixed expenses total $587,500 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 $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 Flight Dynamic $ 650,000 68% Sure Shot $ 350,000 76% Total $ 1,000,000 ? Sales CM ratio Fixed expenses total $587,500 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 $56,000 a month, by how much would monthly net operating income 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

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