15.

value: 5.78 points

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	$	118,000	$	59,000	$	177,000
Variable expenses		29,320		6,080		35,400
Contribution margin	$	88,680	$	52,920		141,600
Fixed expenses						88,560
Net operating income					$	53,040

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

Overall CM ratio

%

2.	Compute the overall break-even point for the company in sales dollars. (Do not round intermediate calculation.)

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.)

	Predator	Runway	Total
(Click to select)Fixed expensesContribution marginSalesNet operating income (loss)Variable expenses	$	$	$
(Click to select)Contribution marginNet operating income (loss)SalesVariable expensesFixed expenses
(Click to select)Fixed expensesVariable expensesSalesNet operating income (loss)Contribution margin	$	$
(Click to select)Net operating income (loss)Contribution marginVariable expensesSalesFixed expenses
(Click to select)SalesNet operating income (loss)Fixed expensesVariable expensesContribution margin			$

15 578 points Exercise 5-10 Compute the Break-Even Point for a Multiproduct Company LO9l Lucky Products markets two computer games: Predator and Runway. A contribution format income statement for a recent month for the two games appears below: Runway Predator Total $118,000 $59.000 $177,000 29,320 6.080 35,400 Sales Variable expenses 141,600 Contribution margin 88,680 $52,920 Fixed expenses 88,560 Net operating income S 53.040 Required 1. Compute the overall contribution margin (CM) ratio for the company. Overall CM ratio 2. Compute the overall break-even point for the company in sales dollars. (Do not round intermediate calculation.) 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.) Predator Runwa Total Click to select (Click to select) Click to select Click to select Click to select