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 Dynanic $ 660, e00 64 Sure Shot Total Sales Of ratio $ 340, 000 S 1,000,000 79% Fixed expenses total $581000 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 $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. Required 1 Required 2 Required 3 If sales increase by $52,000 a month, by how much would you expect the monthly net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net operating income increases by (Required2

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 Dynanic $ 660, e00 64 Sure Shot Total Sales Of ratio $ 340, 000 S 1,000,000 79% Fixed expenses total $581000 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 $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. Required 1 Required 2 Required 3 If sales increase by $52,000 a month, by how much would you expect the monthly net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net operating income increases by (Required2

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.3CP

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Zulfiqar Incorporation produces and sells a single product, has provided its contribution format income statement for April. Sales (1,500 units Rs. 1,500,0 Variable Expens 1,102,5 Contribution Marg 397,5 Fixed Co 272,9 Net Prof 124,5 Calculate the Break Even Sales in Rs. for Zulfiqar 50it50st00in00es00) a 50it50st00in00es00) I 50it50st00in00es00) n 50it50st00in00es00) c 50it50st00in00es00) o 50it50st00in00es00) r 50it50st00in00es00) p 50it50st00in00es00) o 50it50st00in00es00) r 50it50st00in00es00) a 50it50st00in00es00) t 50it50st00in00es00) i 50it50st00in00es00) o 50it50st00in00es00) n 50it50st00in00es00) or Zulfiqar Incorporation?
3-16 Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the incometax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company needto sell to produce a net income of $15,000?a. 5,625 b. 4,445c. 3,750 d. 3,3333-17 During the current year, XYZ Company increased its variable SG&A expenses while keeping fixedSG&A expenses the same. As a result, XYZ’s:a. Contribution margin and gross margin will be lower.b. Contribution margin will be higher, while its gross margin will remain the same.c. Operating income will be the same under both the financial accounting income statement and contributionincome statement.d. Inventory amounts booked under the financial accounting income statement will be lower than underthe contribution income statement.3-18 Under the contribution income statement, a company’s contribution margin will be:a. Higher if fixed SG&A costs decrease.b. Higher if variable SG&A costs…
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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?
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Q#1HASF & Company produces cleaning kits for shotguns. The production capacity available will enable the firm to produce 50,000 kits annually. A projected income statement for next year shows Sales 460,000 Costs of goods sold 296,000 Gross profit 164,000 Selling and administrative expenses 125,000 Net income 39,000 Fixed manufacturing overhead costs 40% of the cost of goods sold. Regular selling price per unit is 10 A 10% sales commission is paid to sales representatives for each kit sold. The purchasing department of a large discount chain has offered to purchase 1500 kits at $6 each. Company sales manager’s initial response is to refuse the offer…
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Q4. A Company produces a ungle product which sells for $20 per unit. Vanable Cost is $15 and feed cost for the years 5630.000 Required (1) Calculate Sales rate needed to earn profit of 10 on sales (2) Calculate sales guide per un BEP down to 120,000 units