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Lucky Products markets two computer games: Predator and Runway. A contribution format income statement for a recent month for the two games appears below: |
| Predator | Runway | Total | ||||
| Sales | $ | 114,000 | $ | 57,000 | $ | 171,000 |
| Variable expenses | 28,360 | 5,840 | 34,200 | |||
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| Contribution margin | $ | 85,640 | $ | 51,160 | 136,800 | |
| Fixed expenses |
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88,080 | |
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| Net operating income | $ | 48,720 | ||||
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| Required: | |
| 1. |
Compute the overall contribution margin (CM) ratio for the company. (Omit the “%” sign in your response.) |
| Overall CM ratio | % |
| 2. |
Compute the overall break even point for the company in sales dollars. (Do not round intermediate calculation. Omit the “$” sign in your response.) |
| Overall break even point | $ |
| 3. |
Complete the contribution format income statement at break even point for the company showing the appropriate levels of sales for the two products. (Input all amounts as positive values except losses which should be indicated by a minus sign. Leave no cells blank be certain to enter “0” wherever required. Do not round intermediate calculations. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.) |
| Predator | Runway | Total | |
| (Click to select) Contribution margin Fixed expenses Variable expenses Sales Net operating income (loss) | $ | $ | $ |
| (Click to select) Variable expenses Fixed expenses Sales Contribution margin Net operating income (loss) | |||
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| (Click to select) Net operating income (loss) Sales Fixed expenses Contribution margin Variable expenses | $ | $ | |
| (Click to select) Net operating income (loss) Contribution margin Sales Fixed expenses Variable expenses |
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| (Click to select) Contribution margin Variable expenses Net operating income (loss) Fixed expenses Sales | $ | ||