Question
Question attached. Thanks for the help.
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: The company's fixed expenses total $565,000 per month. Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places. Input all amounts as positive values except losses which should be indicated by minus sign. Omit the "$" and "%" signs in your response.) 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 $ If sales increase by $49,000 per month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Net operating income increases by $
Explanation / Answer
Model A100
Model B900
Total company
Amount
%
Amount
%
Amount
Percent
Sales
710000
100
290000
100
1,000,000
100
Variable expense
220100
31
66700
23
286800
28.68
Contribution Margin
489900
69
223300
77
713200
71.32
Fixed expenses
585000
Net Operating Income
128200
Break even point = 585000.0.7132 = $ 820246.77
Model A100
Model B900
Total company
Amount
%
Amount
%
Amount
Percent
Sales
710000
100
290000
100
1,000,000
100
Variable expense
220100
31
66700
23
286800
28.68
Contribution Margin
489900
69
223300
77
713200
71.32
Fixed expenses
585000
Net Operating Income
128200