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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?

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