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Homework answers / question archive / Olongapo Sports Corporation is the distributor in the Philippines of two premium golf balls-the Flight Dynamic and the Sure Shot
Olongapo Sports Corporation is the distributor in the Philippines of two premium golf balls-the Flight Dynamic and the Sure Shot. Monthly sales, expressed in pesos (P), and the contribution margin ratios for the two products follow: Product Flight Dynamic Sure Shot Total Sales P150,000 P250,000 P400,000 CM ratio. 80% 36% ? Fixed expenses total P183,750 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place. 2. Compute the break-even point for the company based on the current sales mix. 3. If sales increase by P100,000 a month, by how much would you expect net operating income to increase? What are your assumptions?
