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Problem:

Compute the overall contribution margin ratio for the video game company, and the overall break-even point for the company in dollar sales. A contribution format income statement from the month is as follows:

Sales: $110,000 (Game 1), $55,000 (Game 2), $165,000 (Total)

Variable expenses: $34,000 (Game 1), $7,250 (Game 2), $41,250 (Total)

Contribution margin: $76,000 (Game 1), $47,750 (Game 2), $123,750 (Total)

Fixed expenses: $86,400 (Total)

Net operating income: $37,350 (Total)

Overall CM ration = _______%

Overall break-even point = ________ (Round to nearest dollar amount)

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163624

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