Okabee Enterprise.
Okabee Enterprise.
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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: |
Product | |||
Model A100 | Model B900 | Total | |
Sales | $700,000 | $300,000 | $1,000,000 |
Contribution margin ratio | 66% | 71% | ? |
The companyAc€?cs fixed expenses total $574,500 per month. |
Required: (Write down all working process) | |
1. | Prepare a contribution format income statement for the company as a whole.(Round your percentage answers to 2 decimal places. Input all amounts as positive values except losses which should be indicated by minus sign.) |
Model A100 | Model B900 | Total Company | ||||
Amount | % | Amount | % | Amount | % | |
Sales | ||||||
Variable Expenses | ||||||
Contribution margin | ||||||
Fixed Expenses | ||||||
Net Operating Income ( or loss) | $ | |||||
2. | Compute the break-even point in sales for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) |
Break-even point in sales | $__________________ |
3. | If sales increase by $50,000 per month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) |
Net operating income increases by | $____________________ |