8Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contributionmargin ratios for the two products follow:4pointseBookSalesCM ratioFixed expenses total $583.500 per month.Flight Dynamic$ 710,00063%Required 11 Required 2ProductRequired: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 $59,000 a month, by how much would monthly net operating income increase?SalesVariable expensesContribution marginFixed expensesNet operating incomeSure Shot$ 290,00075%Complete this question by entering your answers in the tabs below.Required 3Total$ 1,000,000Prepare a contribution format income statement for the company as a whole.Note: Round your percentage answers to 2 decimal places (1.e. 0.1234 should be entered as 12.34).Flight DynamicAmount< Rewired 1Sure ShotAmount%%$ 710,000 100.00 $ 290,000 100.00 $ 1,000,000 100.00Total CompanyAmountRequired 2 >

Contribution margin is a sales less variable cost of the company. It is calculated in order to…

Answered: Product Flight Dynamic $ 710,000 63%…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Total Flight Dynamic Sure Shot Sales $ 650,000 $ 350,000 $ 1,000,000 CM ratio 66% 74% ? Fixed expenses total $575,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole.
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 Total Flight Dynamic Sure Shot Sales $ 660,000 $ 340,000 $ 1,000,000 CM ratio 64% 77% ? Fixed expenses total $572,500 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 $58,000 a month, by how much would you expect the monthly net operating income to increase?
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: Sales CM ratio Product Flight Dynamic $ 650,000 68% Fixed expenses total $587,500 per month. Sure Shot $ 350,000 76% Total $ 1,000,000 ? 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 $56,000 a month, by how much would monthly net operating income increase?
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 ................................................. $150,000 $250,000 $400,000 CM ratio ........................................ 80% 36% ? Fixed expenses total $183,750 per month.Required:1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.2. What is the company’s break-even point in dollar sales based on the current sales mix?3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? What are your assumptions?
es Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 76,500 51,000 $ 25,500 Makeover $ 178,500 127,500 $ 51,000 Total $ 255,000 178,500 76,500 61,200 $ 15,300 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 106,000 26,440 $ 79,560 Makeover $ 53,000 5,360 $ 47,640 Total $ 159,000 31,800 127,200 94,080 $ 33,120 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 110,000 34,000 $ 76,000 Required 1 Makeover $ 55,000 7,250 $ 47,750 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Required 2 Required 3 Complete this question by entering your answers in the tabs below. Total $ 165,000 41, 250 123, 750 87,300 $ 36,450 What is the company's overall break-even point in dollar sales? Note: Do not round intermediate calculations. Overall break-even point
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 104,000 $ 52,000 $ 156,000 Variable expenses 25,960 5,240 31,200 Contribution margin $ 78,040 $ 46,760 124,800 Fixed expenses 89,760 Net operating income $ 35,040 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. REQUIRED 1 Overall CM ratio % Required 2 Overall break-even point ....... Required 3 see doc attached.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 102,000 $ 51,000 $ 153,000 Variable expenses 25,480 5,120 30,600 Contribution margin $ 76,520 $ 45,880 122,400 Fixed expenses 88,080 Net operating income $ 34,320 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 120,000 44,200 $ 75,800 Makeover $ 60,000 9,800 $ 50,200 Required: 1. What is the overall contribution margin (CM) ratio for the company? Total $ 180,000 54,000 126,000 82,320 $ 43,680 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Cullumber Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Net income $ (b) Shocker Net Income Tingler $300,000 $500,000 Tingler Net Income $ Total Net Income (c) Why or why not? Compute current net income for Cullumber Company. ta Net income would 151,400 148,600 $ 119,400 S $29,200 Fixed expenses consist of $298,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,800 (Shocker), and $34,300 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Shocker 197,000 303,000 229,800 $73,200 Compute net income by product line and in total for…
JKL Inc. markets two computer games: Game 101 and Game 102. A contribution format income statement for a recent month for the two games appears below: 101 102Sales P30,000 P70,000Variable expenses. 20,000 50,000 Required:a. Compute the overall contribution margin (CM) ratio for the company. b. Compute the overall break-even point for the company in sales dollars if fixed cost is P15,000. c. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.

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