value 2.00 points Exercise 5-12 Multiproduct Break-Even Analysis L05-9 Olongapo

Question

value 2.00 points Exercise 5-12 Multiproduct Break-Even Analysis L05-9 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 Pr Total Flight Dynamic $700,000 e Shot 300,000 $1,000,000 Sales CM ratio 65% 72% Fixed expenses total $598,000 per month Required: 1. Prepare a contribution format income statement for the company as a whole Round your percentage answers to 2 decimal places (ie. 1234 is considered as 12.34) Olongapo Sports Corporation Sure Shot Flight Dynamic Total Company Amount Amount Amount Sales Variable expenses Contribution margin Fixed expenses 0 00 %$S 000 % 0001% 2. Compute the break-even point for the company based on the current sales max (Do not round intermediate calculations. Round your answer to the nearest whole dollar amiount.) reak-even point in sales

Explanation / Answer

Q1 Flight Dynamic Sure Shot Total Company Amount % Amount % Amount % Sales $        700,000 100% $        300,000 100% $        1,000,000 100.00% Variable Expenses $        245,000 35% $          84,000 28% $            329,000 32.90% Contribution Margin $        455,000 65% $        216,000 72% $            671,000 67.10% Fixed Expenses $        216,000 $            598,000 Net Income $              73,000 Answer Formula Q2 Break even poin in sales $        891,207 =598000/67.1% Answer Formula Q3 Net operaing income increase by $          32,830 =49000*67%

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