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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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