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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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:
| Â |
Product |
 | |
| Â | Model A100 | Model B900 | Total |
| Â Â Sales | $700,000 Â Â Â Â | $300,000 Â Â Â Â | $1,000,000 |
| Â Â Contribution margin ratio | 66% | 71% | ? |
| Â | |||
| 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.) |
| Â |
Model A100 |
Model B900 |
Total Company |
|||
| Â | Â Â Â Â Â Â Â Â Â Â Â Â Â Amount | Â Â Â Â Â % | Â Â Â Â Â Â Â Â Â Â Â Â Â Amount | Â Â Â Â Â % | Â Â Â Â Â Â Â Amount | Â Â Â Â Â % |
| Sales | Â | Â | Â | Â Â | Â | Â Â |
| Variable Expenses | Â | Â | Â | Â Â | Â Â | Â Â |
| Â | Â | Â | Â | Â | Â | Â |
| Contribution margin | Â | Â | Â | Â Â | Â Â | Â Â |
| Â | Â | Â | Â | Â | Â | Â |
| Fixed Expenses | Â | Â | Â | Â | Â Â | Â |
| Â | Â | Â | Â | Â | Â | Â |
| Net Operating Income ( or loss) | Â | Â | Â | Â | $Â Â Â | Â |
| Â | Â | Â | Â | Â | Â | Â |
| Â | ||||||
| 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.) |
| Â Â Break-even point in sales | $__________________ Â Â |
| 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 | $____________________ Â Â |
Â
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