Okabee Enterprises is the distributor for two products, Model A100 and Model B90

Question

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 $598,500 per month. Required: Prepare a contribution format income statement for the company as a whole. Compute the break-even point for the company based on the current sales mix. If sales increase by $50,000 per month, by how much would you expect net operating income to increase? What are yourassumptions?

Explanation / Answer

http://www.cgamedia.org/ma10910/module4/ma1_mod4.pdf

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