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