Question

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: Product Flight Dynamic Sure Shot $740,000 Total Sales CM ratio $260,000 $1,000,000 72% 67% Fixed expenses total $569,000 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). Answer is complete but not entirely correct. Olongapo Sports Corporation Flight Dynamic Total Company Sure Shot Amount % Amount Amount % s 260,000 Sales $ 740,000 244,200 s 495,800 % 100.00 100.00 % 1,000,000 100.00 % Variable expenses 33.00 % % 72,800 28.00 317,000 100.00 % Contribution margin Fixed expenses % 67.00 % 187,200 72.00 683,000 0.00 % 569,000 Net operating income $ 114,000 2 Compute the break-even point for the company based on the current sales mix. (Do not round intermediate caleulations. Round your answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Dreak-even point in sales 56,900

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Olongapao Sports
Workings
	Flight Dynamic	Sure Shot	Total	Note
Sales	740,000.00	260,000.00	1,000,000.00	A
CM Ratio	67%	72%		B
Contribution Margin	495,800.00	187,200.00	683,000.00	C=A*B
Variable Expenses	244,200.00	72,800.00	317,000.00	D=A-C
Answer 1
Contribution format Income Statement
	Flight Dynamic		Sure Shot		Total Company
	Amount	%	Amount	%	Amount	%
Sales	740,000.00	100%	260,000.00	100%	1,000,000.00	100%	E
Variable Expenses	244,200.00	33%	72,800.00	28%	317,000.00	31.7%	F
Contribution Margin	495,800.00	67%	187,200.00	72%	683,000.00	68.3%	G=E-F	Contribution Margin % is Total Contribution Margin/ Total Sales
Fixed Expenses					569,000.00		H
Net Operating Income					114,000.00		I=G-H
Answer 2	Amount $
Fixed Expenses	569,000.00	See H
Weighted Contribution Margin	68.3%	See G
Breakeven sales ($)	833,089	J=H/G
Answer 3	Amount $
Increase in sales	45,000.00	K
Weighted Contribution Margin	68.3%	See G
Increase in Net Operating Income	30,735.00	L=K*G