Question: Olongapo Sports Corporation distributes two premium golf balls the Flight Dynamic

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


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. Compute the break-even point for the company based on the current sales mix.
3. If sales increase by $ 100,000 a month, by how much would you expect net operating income to increase? What are yourassumptions?
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  • CreatedMay 20, 2014
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