Lucky Products markets two computer games: Predator and Runway. A contribution format income statement for...

70.2K

Verified Solution

Question

Accounting

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 42,040 9,260 51,300
Contribution margin $ 71,960 $ 47,740 119,700
Fixed expenses 78,750
Net operating income $ 40,950
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 marginVariable expensesFixed expensesSalesNet operating income (loss) $ $ $
(Click to select)Contribution marginFixed expensesVariable expensesSalesNet operating income (loss)
(Click to select)Net operating income (loss)Fixed expensesContribution marginVariable expensesSales $ $
(Click to select)Contribution marginSalesFixed expensesNet operating income (loss)Variable expenses
(Click to select)Contribution marginVariable expensesFixed expensesNet operating income (loss)Sales $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students