question archive Okabee Enterprises is the distributor for two products, Model A100 and Model B900

Okabee Enterprises is the distributor for two products, Model A100 and Model B900

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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 $670,000      $330,000      $1,000,000
  Contribution margin ratio 63% 73% ?
 
The company’s fixed expenses total $597,000 per month.
Required:
1.

Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places.)

   

      

2.

Compute the break-even point in sales for the company based on the current sales mix. (Round your answer to the nearest whole dollar.)

   

      

3.

If sales increase by $58,000 per month, by how much would you expect net operating income to increase?

   

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