Question
In: Accounting
Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the...
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 | |||||||
| Sales | $ | 670,000 | $ | 330,000 | $ | 1,000,000 | |||
| CM ratio | 65 | % | 73 | % | ? | ||||
Fixed expenses total $567,500 per month.
Required:
1. Prepare a contribution format income statement for the company as a whole.
2. What is the company's break-even point in dollar sales based on the current sales mix?
3. If sales increase by $41,000 a month, by how much would you expect the monthly net operating income to increase?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the...
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
Sales
$
720,000
$
280,000
$
1,000,000
CM ratio
66
%
75
%
?
Fixed expenses total $577,500 per month.
Required:
1. Prepare a contribution format income statement for the
company as a whole.
2. What is the company's break-even point in dollar sales based
on the current sales mix?...
Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the...
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
Sales
$
720,000
$
280,000
$
1,000,000
CM ratio
67
%
79
%
?
Fixed expenses total $577,000 per month.
Required:
1. Prepare a contribution format income statement for the
company as a whole.
2. What is the company's break-even point in dollar sales based
on the current sales mix?...
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$1,000,000
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Brunswick Corporation sells bowling balls and has developed the following information: Sales price
Brunswick Corporation sells bowling balls and has developed the
following information:
Sales
price
$60 per unit
Variable cost of goods
sold
$26 per unit
Fixed cost of goods
sold
$500,000
Variable operating
expenses
$1,000,000
Fixed operating
expenses
$650,000
For the year ended December 31, 2018,
Brunswick Corporation produced and
sold 100,000 bowling balls.
Instructions-***SHOW ALL COMPUTATIONS OR
NO CREDIT GIVEN****
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