AV 2000 Inc. has developed a laser disc and a compact disc which have become popular among young adults. Last year's cost and operating data for the two audio-visual products are presented below:

______Per Unit_______

Laser Compact

Disc Disc

Selling price. $50 $10

Contribution Margin ratio.. 60% 20%

______Per Year_______

Sales volume in units. 5,000 15,000

Fixed costs..... $99,000

Required:

1. Prepare last year's contribution income statement showing both amount and percent columns for each product and for the company as a whole.

2. Compute the companys break-even point in dollars using the company's overall CM ratio.

3. Compute each product break-even point in dollars and in units based on the companys overall CM ratio. Specify amount and units for each product.