Okabee Enterprises is the distributor for two products, Model A100 and Model B900. Monthly sales...

90.2K

Verified Solution

Question

Accounting

Okabee Enterprises is the distributor for two products, Model A100 and Model B900. Monthly sales and the contribution margin ratios for the two products follow:

Product

Model A100 Model B900 Total
Sales $690,000 $310,000 $1,000,000
Contribution margin ratio 63% 77% ?

The companys fixed expenses total $583,000 per month.

Required:
1.

Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places. Input all amounts as positive values except losses which should be indicated by minus sign. Omit the "$" and "%" signs in your response.)

Model A100

Model B900

Total Company

Amount % Amount % Amount %
(Click to select)Net operating income (loss)Variable expensesContribution marginFixed expensesSales $ $ $
(Click to select)Fixed expensesSalesContribution marginNet operating income (loss)Variable expenses
(Click to select)SalesFixed expensesContribution marginNet operating income (loss)Variable expenses $ $
(Click to select)Net operating income (loss)Contribution marginFixed expensesSalesVariable expenses
(Click to select)Fixed expensesVariable expensesSalesNet operating income (loss)Contribution margin $

2.

Compute the break-even point in sales for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Break-even point in sales $

3.

If sales increase by $40,000 per month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Net operating income increases by $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students