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Multiproduct Break-Even Analysis Bighorn Co. markets two fishing boat models: Ocean Boat and River Boat. A contribution format income statement for a recent month for
Multiproduct Break-Even Analysis Bighorn Co. markets two fishing boat models: Ocean Boat and River Boat. A contribution format income statement for a recent month for the two games appears below (all numbers in $1,000s): Do not round intermediate calculations. Show your work. Sales Variable expenses Contribution margin Fixed expenses Net operating income Ocean Boat S 98.000 30,400 $ 67,600 River Boat $ 55,000 6,340 $ 48,660 Total $ 153,000 36.740 116,260 86,544 S 29,716 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point showing sales, variable expenses, and contribution margin for each product and the whole company as well as company fixed expenses and net operating income
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