Okabee Enterprises is the distributor for two products, Model A100 and Model B900. Monthly sales...
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Accounting
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
$690,000
$310,000
$1,000,000
Contribution margin ratio
63%
77%
?
The companys fixed expenses total $583,000 per month.
Required:
1.
Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places. Input all amounts as positive values except losses which should be indicated by minus sign. Omit the "$" and "%" signs in your response.)
Model A100
Model B900
Total Company
Amount
%
Amount
%
Amount
%
(Click to select)Net operating income (loss)Variable expensesContribution marginFixed expensesSales
$
$
$
(Click to select)Fixed expensesSalesContribution marginNet operating income (loss)Variable expenses
(Click to select)SalesFixed expensesContribution marginNet operating income (loss)Variable expenses
$
$
(Click to select)Net operating income (loss)Contribution marginFixed expensesSalesVariable expenses
(Click to select)Fixed expensesVariable expensesSalesNet operating income (loss)Contribution margin
$
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. Omit the "$" sign in your response.)
Break-even point in sales
$
3.
If sales increase by $40,000 per month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Net operating income increases by
$
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