Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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) $
15 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 $100,000 $50,000 $150,000 Sales Variable expenses 31,000 6.500 37,500 Contribution margin 69,000 $43,500 112,500 Fixed expenses 86,625 25,875 Net operating income Required e 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) (Click to select) (Click to select) Click to select) Click to select)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance And Risk

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

2rd Edition

0324022131, 978-0324022131

More Books

Students also viewed these Accounting questions