1-Shamrock Products markets two video games: Running and Skiing. 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 dollar sales .

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.

2-Fill in the missing amounts in each of the four case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.)

Required:

1. Cases A and B assume that only one product is being sold.

2. Cases C and D assume that more than one product is being sold

3-Tralynna Products distributes two premium kid chairsHayden Recliner and Hadley Rocking. Monthly sales and the contribution margin ratios for the two products follow:

Fixed expenses total $360,750 per month.

Required:

1.Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.

2.What is the companys break-even point in dollar sales based on the current sales mix?

3.If sales increased by $120,000 a month, by how much would you expect the monthly net operating income to increase?

4-Miller Companys contribution format income statement for the most recent month is shown below

Required: (Consider each case independently):

1.What is the revised net operating income if unit sales increase by 20%?

2.What is the revised net operating income if the selling price decreases by $2.00 per unit and the number of units sold increases by 15%?

3.What is the revised net operating income if the selling price increases by $2.00 per unit, fixed expenses increase by $15,000, and the number of units sold decreases by 4%?

4.What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 80 cents per unit, and the number of units sold decreases by 8%?

Running Skiing Total Sales $120,000 $40,000 $160,000 55,000 17,000 72.000 $ 65,000 $23,000 88,000 Variable expenses Contribution margin Fixed expenses Net operating income 41.250 $ 46,750 Case Sales Units Sold 20,000 Variable Expenses $220,000 $120,000 Contribution Fixed Margin per Unit Expenses ? $45,000 $15 ? Net Operating Income ? $300,000 ? A B 12,000 $18,000 Case Sales Variable Expenses ? Average Contribution Margin Ratio 40% Fixed Expenses ? Net Operating Income $125,000 $900,000 ? D ? 45% $120,000 $37,500 Hayden Recliner Hadley Rocking Total Sales $600,000 $300,000 $900,000 CM ratio 75% 45% ? Per Unit $18.00 10.00 Sales (25,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $450,000 250,000 $200,000 85,000 $115,000 $ 8.00