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 $ 670,000 638 Sales CM ratio Fixed expenses total $589,000 per month. Sure Shot $ 330,000 74% 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 $52,000 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 contribution margin ratios for the two products follow: Product Flight Dynamic $ 670,000 638 Sales CM ratio Fixed expenses total $589,000 per month. Sure Shot $ 330,000 74% 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 $52,000 a month, by how much would you expect the monthly net operating income to increase?

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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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 Total Flight Dynamic Sure Shot Sales $ 660,000 $ 340,000 $ 1,000,000 CM ratio 64% 77% ? Fixed expenses total $572,500 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 $58,000 a month, by how much would you expect the monthly net operating income to increase?
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?
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: Sales CM ratio Product Flight Dynamic $ 650,000 68% Fixed expenses total $587,500 per month. Sure Shot $ 350,000 76% 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?
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