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By how much would expect the monthly net operating income

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Reference no: EM132998355

Olongapo Sports Corporations distributes two premium golf balls - Flight Dynamic (A) and Sure Shot (B). Fixed expenses total $183,750 per month.

Monthly sales and the contribution margin ratios for the two products follow:

                     A                             B                          Total
Sales            $150,000              $250,000          $400,000
CM ratio            80%                     36%                       ?

Problem 1: If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? What are your assumptions?

Reference no: EM132998355

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