Okabee Enterprises is the distributor for two products, Model A100 and Model B900. Monthly sales … 1 answer below »

 
   

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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?