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 | $ | 100,000 | $ | 50,000 | $ | 150,000 |
Variable expenses | 31,000 | 6,500 | 37,500 | |||
Contribution margin | $ | 69,000 | $ | 43,500 | 112,500 | |
Fixed expenses | 86,625 | |||||
Net operating income | $ | 25,875 | ||||
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 a minus 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)Contribution marginNet operating income (loss)Variable expensesSalesFixed expenses | $ | $ | $ |
(Click to select)SalesContribution marginNet operating income (loss)Variable expensesFixed expenses | |||
(Click to select)SalesContribution marginFixed expensesVariable expensesNet operating income (loss) | $ | $ | |
(Click to select)SalesContribution marginFixed expensesNet operating income (loss)Variable expenses | |||
(Click to select)Contribution marginSalesVariable expensesFixed expensesNet operating income (loss) | $ | ||
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