Question
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
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 | $ | 96,000 | $ | 48,000 | $ | 144,000 |
Variable expenses | 35,560 | 7,640 | 43,200 | |||
Contribution margin | $ | 60,440 | $ | 40,360 | 100,800 | |
Fixed expenses | 77,280 | |||||
Net operating income | $ | 23,520 | ||||
Required: | |
1. | Compute the overall contribution margin (CM) ratio for the company. |
Overall CM ratio | % |
2. | Compute the overall break-even point for the company in sales dollars.(Do not round intermediate calculation.) |
Overall break-even point | $ |
3. | Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products.(Input all amounts as positive values except losses which should be indicated by aminus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) |
Predator | Runway | Total | |
(Click to select)Net operating income (loss)SalesContribution marginVariable expensesFixed expenses | $ | $ | $ |
(Click to select)Net operating income (loss)Variable expensesFixed expensesContribution marginSales | |||
(Click to select)Fixed expensesNet operating income (loss)Contribution marginVariable expensesSales | $ | $ | |
(Click to select)SalesNet operating income (loss)Variable expensesFixed expensesContribution margin | |||
(Click to select)Contribution marginFixed expensesSalesVariable expensesNet operating income (loss) | $ | ||
|
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