Find the overall break-even point for the company

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Reference no: EM132713840

Shamrock Products markets two video games: Running and Skiing. A contribution format income statement for a recent month for the two games appears below:

Sales	$120,000 $40,000 $160,000
Variable expenses	55.000 17.000 72.000
Contribution margin	$ 65.000	$23,000	88,000
Fixed expenses			41.250
Net operating income			$ 46,750

Required:

Problem 1. Compute the overall contribution margin (CM) ratio for the company.

Problem 2. Compute the overall break-even point for the company in dollar sales .

Problem 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.

Reference no: EM132713840

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