Compute the Break-Even Point for a Multiproduct Company [LO9]

Lucky Products markets two computer games: Predator and Runway. A contribution format income statement for a recent month for the two games appears below:

Required:
1. Compute the overall contribution margin (CM) ratio for the company.
2. Compute the overall break-even point for the company in sales dollars.
3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.

Transcribed Image Text:

Sales Variable expenses. Contribution margin. Fixed expenses Net operating income Predator Runway Total $100,000 $50,000 $150,000 25,000 5,000 30,000 $ 75,000 $45,000 120,000 90,000 $ 30,000