Unicorn Enterprises produces two strategy games, Mystical Wars and Magical Dragons. The projected income for the coming year, segmented by product line, follows: Wars Dragons Total Sales RM 500,000 RM 800,000 RM 1,300,000 Less: Variable costs 230,000 460,000 690.000 Contribution margin 270,000 340,000 610,000 Less: Direct fixed expenses 120,000 180.000 300,000 Product margin 150,000 160,000 310,000 Less: Common fixed expenses 210,000 Operating income 100,000 The selling prices are RM 10 for Mystical Wars and RM 20 for Magical Dragons. Required: 1. Compute the number of games of each kind that must be sold for Unicorn Enterprises to reach its break-even. 2. Compute the revenue that must be earned to produce a net income of 10% of sales revenue.

Unicorn Enterprises produces two strategy games, Mystical Wars and Magical Dragons. The projected income for the coming year, segmented by product line, follows: Wars Dragons Total Sales RM 500,000 RM 800,000 RM 1,300,000 Less: Variable costs 230,000 460,000 690.000 Contribution margin 270,000 340,000 610,000 Less: Direct fixed expenses 120,000 180.000 300,000 Product margin 150,000 160,000 310,000 Less: Common fixed expenses 210,000 Operating income 100,000 The selling prices are RM 10 for Mystical Wars and RM 20 for Magical Dragons. Required: 1. Compute the number of games of each kind that must be sold for Unicorn Enterprises to reach its break-even. 2. Compute the revenue that must be earned to produce a net income of 10% of sales revenue.

Name: Tutorial Q. 3Unicorn Enterprises produces two strategy games, Mystica
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Description: Tutorial Q. 3Unicorn Enterprises produces two strategy games, Mystical Wars and Magical Dragons. Theprojected income for the coming year, segmented by product line, follows:WarsDragonsTotalSalesRM500,000RM800,000RM1,300,000Less: Variable costs230,00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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