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    Break-even point for a Multi product Company

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    Please see the attached problem.

    Amazing Products markets to computer games: Predator and Runway. A contribution format income statement for a recent month for the two games appears below:
    Predator Runway Total
    Sales $112,000 $56,000 $168,000
    Variable expenses 27,880 5,720 33,600
    Contribution margin $ 84,120 $50,280 134,400
    Fixed expenses 90,000
    Net operating income $ 44,400

    Requirement 1:
    Compute the overall contribution margin (CM) ratio for the company.
    Overall CM ration = ______ %

    Requirement 2:
    Compute the overall break-even point for the company in sales dollars.
    Overall break-even = $_______

    Requirement 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. (Round answer to the nearest dollar amount. Do not round interim calculation and leave no cells blank - be certain to enter 0 wherever required)
    Predator Runway Total
    Original dollar sales $ $ $
    Sales at break-even $ $ $

    Predator Runway Total
    Sales $ $ $
    Variable expenses
    Contribution margin $ $
    Fixed expenses
    Net operating income $

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    Solution Summary

    The solution explains how to calculate the break-even point for a multi product company