Multiproduct Break-Even Analysis Okabee Enterprises is the distributor for two products, Model… 1 answer below »

Multiproduct Break-Even Analysis

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 $598,500 per month.

Required:

1.       Prepare a contribution format income statement for the company as a whole.

2.       Compute the break-even point for the company based on the current sales mix.

3.       If sales increase by $50,000 per month, by how much would you expect net operating income to increase? What are your assumptions?