Olongapo Sports Corporation distributes two premium golf balls Flight Dynamic and Sure Shot. Monthly sales...
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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 Flight Dynamic Sure Shot Total $150,000 $250,000 $400,000 80% 36% ? Sales ... CM ratio Fixed expenses total $183,750 per month Required: 1. Prepare a contribution format income statement for the company as a whole. Carry computa- tions to one decimal place. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $100,000 a month, by how much would you expect the monthly net oper- ating income to increase? What are your assumptions
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