Okabee Enterprise.

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

$700,000     

$300,000     

$1,000,000

  Contribution margin ratio

66%

71%

?

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.)

Model A100

Model B900

Total Company

             Amount

     %

             Amount

     %

       Amount

     %

Sales

Variable Expenses

Contribution margin

Fixed Expenses

Net Operating Income ( or loss)

$   

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.)

  Break-even point in sales

$__________________   

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

$____________________