Olongapo Sports Corporation is the distributor in the Philippines of two premium

Question

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 P 720,000 P 280,000 P 1,000,000

CM ratio 62% 78% ?

Fixed expenses total P587,500 per month.
Requirement 1:

Prepare a contribution format income statement for the company as a whole. (Round your percentage values to 2 decimal places, e.g., .1234 as 12.34. Omit the "P" and "%" signs in your response)

Explanation / Answer

Amount in $ Total Sales Flight Dynamic       720,000 Sure Shot       280,000       1,000,000 Less: Variable cost Flight Dynamic @38%       273,600 Sure Shot @22%         61,600         335,200 Contribution Flight Dynamic @62%       446,400 Sure Shot @78%       218,400         664,800 Less: Fixed expenses         587,500 Net income           77,300

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