Answer:
Product                      Flight Dynamic        Sure Shot           Total 
Sales                              $660,000            $340,000     $1,000,000 
CM ratio                               63%                     78%                68.1%
Contribution margin     $415,800              $265,200       $681,000
Fixed expenses                                                               ($589,500)
Operating income                                                               $91,500
1. Prepare a contribution format income statement for the company as a whole. 
Revenue $1,000,000
<u>Variable costs ($319000)</u>
Contribution margin $681,000
<u>Period costs ($589,500)</u>
Operating income $91,500
2. What is the company's break-even point in dollar sales based on the current sales mix? 
break even point = fixed costs / CM ratio = $589,500 / 0.681 = $865,638.77
3. If sales increase by $59,000 a month, by how much would you expect the monthly net operating income to increase?
operating income would increase by $59,000 x 0.681 = $40,179