Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contributio margin ratios for the two products follow: Product Flight Dynamic $ 740,000 64% Sure Shot $ 260,000 74% Sales CM ratio Fixed expenses total $580,000 per month. 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? 2. If sales increase by $53.000 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 contributio margin ratios for the two products follow: Product Flight Dynamic $ 740,000 64% Sure Shot $ 260,000 74% Sales CM ratio Fixed expenses total $580,000 per month. 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? 2. If sales increase by $53.000 a month by how much would you expect the monthly net operating income to increase?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CE
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