Managerial Accounting
15th Edition
ISBN: 9780078025631
Author: Ray H Garrison, Eric Noreen, Peter C. Brewer Professor
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 10E
EXERCISE 5-10 Multiproduct Break-Even Analysis LO5-9
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below:
Required:
- What is the overall contribution margin (CM) ratio for the company?
- What is the company's overall break-even point in dollar sales?
- 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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
01:09:21
ook
nt
nces
Lucido Products markets two computer games: Claimjumper and Makeover. A
contribution format income statement for a recent month for the two games appears
below:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required 1 Required 2
Claimjumper
$ 63,900
42,600
$ 21,300
Sales
Variable expenses
Contribution margin
Required:
1. What is the overall contribution margin (CM) ratio for the company?
2. What is the company's overall break-even point in dollar sales?
3. Prepare a contribution format income statement at the company's break-even point
that shows the appropriate levels of sales for the two products.
Fixed expenses
Net operating income (loss)
Complete this question by entering your answers in the tabs below.
Required 3
Makeover
$21,300,000
106,500
42,600
$
Prepare a contribution format income statement at the company's break-even point that sh
for the two products. (Do not round intermediate calculations. Round your answers to the r…
ok
ht
nt
ences
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent
month for the two games appears below:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Claimjumper
$ 63,900
42,600
$ 21,300
Makeover
Total
$ 149,100 $ 213,000
106,500
149, 100
#1
$ 42,600
63,900
51,120
$ 12,780
Required:
1. What is the overall contribution margin (CM) ratio for the company?
2. What is the company's overall break-even point in dollar sales?
3. Prepare a contribution format income statement at the company's
the two products.
even point that shows the appropriate levels of sales for
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent
month for the two games appears below:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Claimjumper
$57,600
38,400
$ 19, 200
Required:
1. What is the overall contribution margin (CM) ratio for the company?
2. What is the company's overall break-even point in dollar sales?
3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for
the two products.
Required 1 Required 2 Required 3
Complete this question by entering your answers in the tabs below.
Sales
Variable expenses
Contribution margin
Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales
for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
Engberg Company
Contribution Income…
Chapter 5 Solutions
Managerial Accounting
Ch. 5 - Prob. 1QCh. 5 - Often the most direct route to a business decision...Ch. 5 - Prob. 3QCh. 5 - What is the meaning of operating leverage?Ch. 5 - What is the meaning of break-even point?Ch. 5 - 5-6 In response to a request from your immediate...Ch. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 1AE
Ch. 5 - Prob. 2AECh. 5 - Prob. 3AECh. 5 - Prob. 4AECh. 5 - Prob. 5AECh. 5 - Prob. 1F15Ch. 5 - Prob. 2F15Ch. 5 - Prob. 3F15Ch. 5 - Prob. 4F15Ch. 5 - Prob. 5F15Ch. 5 - Prob. 6F15Ch. 5 - Prob. 7F15Ch. 5 - Prob. 8F15Ch. 5 - Prob. 9F15Ch. 5 - Prob. 10F15Ch. 5 - Prob. 11F15Ch. 5 - Prob. 12F15Ch. 5 - Prob. 13F15Ch. 5 - Prob. 14F15Ch. 5 - Prob. 15F15Ch. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - EXERCISE 5-10 Multiproduct Break-Even Analysis...Ch. 5 - Prob. 11ECh. 5 - EXERCISE 5-12 Multiproduct Break-Even Analysis...Ch. 5 - EXERCISE 5-13 Changes in Selling Price, Sales...Ch. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19PCh. 5 - PROBLEM 5-20 CVP Applications: Break-Even...Ch. 5 - PROBLEM 5-21 Sales Mix; Multiproduct Break-Even...Ch. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 -
PROBLEM 5-25 Changes in Fixed and Variable Costs;...Ch. 5 -
PROBLEM 5-26 CVP Applications; Break-Even...Ch. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 -
PROBLEM 5-31 Interpretive Questions on the CVP...Ch. 5 -
CASE 5-32 Break-Even Analysis for Individual...Ch. 5 - Prob. 33C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income References Required: 1. What is the overall contribution margin (CM) ratio for the company? Ass 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. complete all parts P References Sales Claimjumper $ 94,000 23,560 $ 70,440 $ 42,360 What is the overall contribution margin (CM) ratio for the company? Overal CM ratio Net operating income (loss) Makeover $ 47,000 4,640 Required 1 Required 2 What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall brouk-even point Complete this question by entering your answers in the tabs below.…arrow_forwardQuestion 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margini 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: a. The contribution margin ratio in percentage. b. Three breakeven point in total sales ringgits.arrow_forwardQuestion 3 Study the information given below and answer: 3.2 Use the marginal income ratio to calculate the break-even value. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%arrow_forward
- West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.arrow_forwardLucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required 1 Claimjumper $ 30,000 20,000 $ 10,000 Required: 1. What is the company's overall contribution margin (CM) ratio? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Complete this question by entering your answers in the tabs below. Overall CM ratio Required 2 Required 3 Makeover $ 70,000 50,000 $ 20,000 What is the company's overall contribution margin (CM) ratio? %arrow_forwardQuestion 2 Two companies. The North and South sell the same type of product in the same type of market. Their budgeted profit and loss account for the year ended 31st March, 2018 were as follows: North South Sales 75,000 75,000 Variable cost 60,000 50,000 Fixed Cost 7,500 17, 500 67,500 67,500 Net Profit 7,500 7,500 You are required to: a. Calculate the break-even sales revenue of each enterprise b. State with reason which business is likely to earn greater profit in conditions of į. Heavy demand for the product and ii. Low demand for the product. c. If North Company increases its capacity by 40% and this increased fixed cost by $2,000 per annum, at what sales revenue will it make the same Net Profit as before?arrow_forward
- Question 3 Study the information given below and answer: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2. Selling price per table 3. 4. 5. Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%arrow_forwardLucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 110,000 34,000 $ 76,000 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Required 1 Required 2 Required 3 Makeover $ 55,000 7,250 $ 47,750 Complete this question by entering your answers in the tabs below. Overall CM ratio What is the overall contribution margin (CM) ratio for the company? % Total $ 165,000 41,250 123,750 87,300 $36,450arrow_forwardLucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 110,000 34,000 $ 76,000 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Required 1 Required 2 Required 3 Makeover $ 55,000 7,250 $ 47,750 Complete this question by entering your answers in the tabs below. Net operating income (loss) Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Lucido Products…arrow_forward
- estion 2: vin Question 1: a. Explain the meaning of breakeven point and the benefit of using it in businesses. b. Given the following information for SAMAR Company, answer the following questions: Selling price (per unit) Number of units sold Variable cost (per unit) Fixed cost i.Calculate contribution margin ratio ii.Find Breakeven Point in amount iii.Find Breakeven Point in units 240 R.O 700 R.O 130 R.O 560,000 R.Oarrow_forwardPDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even.arrow_forwardPROBLEM 7 Tito Company sells several products. Information of average revenue and costs are as follows: Selling price per unitPhp20.00 Variable costs per unit: Direct materialsPhp4.00 Direct manufacturing labor Php1.60 Manufacturing overhead Php0.40 Selling costsPhp2.00 Annual fixed costs Php96,000 26. Calculate the contribution margin per unit. 27. Calculate the number of units Tito's must sell each year to break even. 28. Determine the breakeven point in peso. 29. Calculate the number of units Tito's must sell to yield a profit of Php144,000. PROBLEMarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
What is Risk Management? | Risk Management process; Author: Educationleaves;https://www.youtube.com/watch?v=IP-E75FGFkU;License: Standard youtube license