Prolay Company manufactures two products: Product A and Product B. A contribution format income statement related to a recent month for the two products is given below.

3. What is the overall contribution margin ratio? *

4 points

34%

40%

60%

66%

None of the above

4. What is the overall break-even point for the company in sales dollars? *

4 points

$1,360,000

$2,720,000

$4,800,000

$8,000,000

None of the above

5. What is the amount of relative sales dollars for product A at the break-even point? *

4 points

$3,200,000

$4,800,000

$7,200,000

$8,000,000

None of the above

6. What is the amount of total contribution margin at the break-even point? *

4 points

$1,360,000

$2,720,000

$4,800,000

$8,000,000

None of the above

7. What is the amount of total variable expenses for the two products at the break-even point? *

4 points

$2,720,000

$5,148,000

$5,280,000

$7,920,000

None of the above

Product A Product B Total Sales $7,200,000 $4,800,000 $12,000,000 5,148,000 2.772,000 7.920,000 Variable Expenses Contribution Margin Fixed Expenses $2,052,000 $2,028,000 4,080,000 2.720,000 Net Operating Income $1,360,000