Question: Lucky Products markets two computer games: Predator and Runway. A contribution format income statement for a recent month for the two games appears below: Required:
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Required:
1. Compute the overall contribution margin (CM) ratio for the company.
2. Compute the overall break-even point for the company in sales dollars.
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 twoproducts.
Predator Runway Total Sales Variable expenses Fixed expenses.. Net operating income... $100,000 $50,000 $150,000 25,000 5,000 30,000 Contribution margin S 75,000 $45,000 120,000 90,000 S 30,000
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1 The overall contribution margin ratio can be computed as follows 2 The ... View full answer
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