Question
Lucky Products markets two computer games: Predator and Runway. The company sold 2,000 Predator and 1,000 Runway. A contribution format income statement for a recent
Lucky Products markets two computer games: Predator and Runway. The company sold 2,000 Predator and 1,000 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 25,000 5,000 30,000
Contribution Margin $75,000 $45,000 $120,000
Fixed Expenses 90,000
Net Operating Income $30,000
REQUIRED
Using a ratio of 2 Predators sold by 1 Runway sold, determine the Break-even point for the company
Determine the BEP if the company only sells Predator games
Determine the BEP if the company only sells Runway games
D
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