Olongapo Sports Corporation Flight Dynamic Sure Shot Total Company Amount Amount

Question

Olongapo Sports Corporation Flight Dynamic Sure Shot Total Company Amount Amount Amount Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 670,000 100.001% 26.001% 74.00 % 100.00196 $ 330,000 1,000,000 100.001% 32.031 % 67.97% 24 ot 5 0 % 35.001 % 65.00% | $ 244,200 85,800 6 0 % 320,300 S 435,500 679,700, 596,500 $83,200 2. Compute the break-even point for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) -even point in sales 3. If sales increase by $58,000 a month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) et operating income increases by

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Olangapo Sports corporation Flight Dynamic SureShot Total Company Paticulars Amount % Amount % Amount % Sales               670,000.00 100.00%              330,000.00 100.00%    1,000,000.00 100.00% Variable costs               234,500.00 35.00%                85,800.00 26.00%        320,300.00 32.03% Contribution Margin               435,500.00 65.00%              244,200.00 74.00%        679,700.00 67.97% Fixed expenses        596,500.00 Net operating income          83,200.00 CM Ratio = contribution sales 67.97% BEP in $ = 596,500/67.97%               877,593.06 If sales increase by 58,000, net operating income would increase by 58,000*67.97%                 39,422.60

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