60.1K

Verified Solution

Link Copied!

.Please type how do to calculate solution example how the variable expense is found Thanks

Olongapo Sports Corporation distributes two premium golf ballsthe Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Please type how to calculate solutiion example how do you calculate the variable expenses, Thanks

Product

Flight Dynamic Sure Shot Total Sales $730,000 $270,000 $1,000,000 CM ratio 66% 73% ?

Fixed expenses total $558,000 per month.

Olongapo Sports Corporation distributes two premium golf ballsthe Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow:

Product

Flight Dynamic Sure Shot Total Sales $730,000 $270,000 $1,000,000 CM ratio 66% 73% ?

Fixed expenses total $558,000 per month.

Required:

1.

Prepare a contribution format income statement for the company as a whole. Round your percentage answers to 2 decimal places (i.e. .1234 is considered as 12.34).

2.	Compute the break-even point for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

3.	If sales increase by $47,000 a month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Answer & Explanation Solved by verified expert

See Answer