A contribution format income statement

Question

Exercise 5-10 Compute the Break-Even Point for a Multiproduct Company [LO9]

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	$	98,000	$	49,000	$	147,000
Variable expenses		24,520		4,880		29,400
Contribution margin	$	73,480	$	44,120		117,600
Fixed expenses						90,480
Net operating income					$	27,120

 

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
	$	$	$
	$	$
			$