EXERCISE 510 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:

	Predator	Runway	Total
Sales	100,000$	50,000$	150,000$
Variable Expense	25,000$	5,000$	30,000$
Contribution Margin	75,000$	45,000$	120,000$
Fixed Expenses			90,000$
Net Operating Income			30,000$

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.