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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 $____________________