Question attached. Thanks for the help. Okabee Enterprises is the distributor fo

Question

Question attached. Thanks for the help.

Okabee Enterprises is the distributor for two products, Model A100 and Model B900. Monthly sales and the contribution margin ratios for the two products follow: The company's fixed expenses total $565,000 per month. Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places. Input all amounts as positive values except losses which should be indicated by minus sign. Omit the "$" and "%" signs in your response.) Compute the break-even point in sales for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Break-even point in sales $ If sales increase by $49,000 per month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Net operating income increases by $

Explanation / Answer

Model A100

Model B900

Total company

Amount

%

Amount

%

Amount

Percent

Sales

710000

100

290000

100

1,000,000

100

Variable expense

220100

31

66700

23

286800

28.68

Contribution Margin

489900

69

223300

77

713200

71.32

Fixed expenses

585000

Net Operating Income

128200

Break even point = 585000.0.7132 = $ 820246.77

Model A100

Model B900

Total company

Amount

%

Amount

%

Amount

Percent

Sales

710000

100

290000

100

1,000,000

100

Variable expense

220100

31

66700

23

286800

28.68

Contribution Margin

489900

69

223300

77

713200

71.32

Fixed expenses

585000

Net Operating Income

128200

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.