EXERCISE 5-10 Compute the Break-Even Point for a Multiproduct Company (L09] Lucky Products markets two...
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EXERCISE 5-10 Compute the Break-Even Point for a Multiproduct Company (L09] 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 Variable expenses Contribution margin. Fixed expenses... Net operating income $100,000 $50,000 25,000 5,000 $ 75,000 $45,000 $150,000 30,000 120,000 90,000 $ 30,000 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 two products
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