Shamrock Products markets two video games: Running and Skiing. A contribution format

income statement for a recent month for the two games appears below:

Required:

1. Compute the overall contribution margin (CM) ratio for the company.

2. Compute the overall break-even point for the company in dollar sales .

3. Verify the overall break-even point for the company by constructing a contribution format

income statement showing the appropriate levels of sales for the two products.

Running Skiing Total Sales $120,000 $40,000 $160,000 55,000 17,000 72.000 $ 65,000 $23,000 88,000 Variable expenses Contribution margin Fixed expenses Net operating income 41.250 $ 46,750