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EXERCISE 5–10 Compute the Break-Even Point for a Multiproduct Company [LO9] Lucky Products… 1 answer below » 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: View complete question » Sales . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $50,000 $150,000 Variable expenses . . . . . . . . . . . . . . . . 25,000 5,000 30,000 Contribution margin . . . . . . . . . . . . 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: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $50,000 $150,000 Variable expenses . . . . . . . . . . . . . . . . 25,000 5,000 30,000 Contribution margin . . . . . . . . . . . . . . . $ 75,000 $45,000 120,000 Fixed expenses . . . . . . . . . . . . . . . . . . 90,000 Net operating income . . . . . . . . . . . . . $ 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. View less » Dec 07 2015 05:55 PM
