Welcome, ALVIN Zeds Dead-Hadouken 4-2 ezto.mheducation.com/hm.tpx Chapter 5 HW Q

Question

Welcome, ALVIN Zeds Dead-Hadouken 4-2 ezto.mheducation.com/hm.tpx Chapter 5 HW Question 2 (of 8) value 2.00 points 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 Variable expenses Predator Runway $100,000 $50,000 Total $150,000 45,000 37,000 8,000 Contribution margin Fixed expenses 63,000 $42,000 105,000 80,640 Net operating income S 24,360 Required: 1. e the overall contribution margin (CM) ratio for the company Overall CM ratio 70% 2. Compute the overall break-even point for the company in sales dollars. (Do not round intermediate calculation.) Overall break-even point 115200 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 positi which should be indicated by a minus sign. Leave no cells blank- be certain to enter "" wherever required. Do not round intermediate calculations. Round your answers to the nearest dollar amount ve values except losses Search the web and Windows

Explanation / Answer

Lucky Products Details Predator Runaway Total Sales            100,000            50,000         150,000 Variable expense            37,000              8,000           45,000 Contribution Margin            63,000            42,000         105,000 Fixed expenses           80,640 Net Operating Income           24,360       1 Overall contribution margin   70%       2 Fixed costs            80,640 Overall contribution margin   70% Break even sales $=80640/70%= $      115,200       3 Contribution format at BEP Details Predator Runaway Total Sales              76,800            38,400         115,200 Sales 2:1 ratio Variable expense            28,416              6,144           34,560 at 37% &16% of sales Contribution Margin            48,384            32,256           80,640 Fixed expenses           80,640 Net Operating Income                    -         3 Pringle company Amt $ per unit $ Sales            608,000                    40 Variable expense          425,600                    28 Contribution Margin          182,400                    12 Fixed expenses          144,000 Net Operating Income            38,400       1 BEP units =Fixed exp /Unit Contribution            12,000 Break even $ sales =12000*40=          480,000       2 Contribution at BEP level =Fixed cost=          144,000       3 For target profit of $80,400, Contribution required; Fixed expenses          144,000 Plus target profit            80,400 Total required contribution          224,400 Unit contribution                     12 Required sales in Unit            18,700       4 Actual sales          608,000 Break even sales          480,000 Margin of safety          128,000 Margin of safety % 21%       5 CM ratio = Contribution/sales= 30% The net operating income will increase by 30% of increase in sales       4 Chi Omega sorority Details   Amt $ Dinner per person                     14 Favors &Program per person                       7 Variable cost per person                     21 Revenue per person                     49 Contribution margin /person                     28 57.1% Fixed costs Band               1,800 Tickets &adv                  700 riverboat rental               1,100 Floorshow etc               2,000 Total fixed costs               5,600       1 BEP =                  200 persons       2 If 350 persons attend For break even contribution required=               5,600 Variable cost @21               7,350 Sales revenue required            12,950 Ticket per person=               37.00

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.