Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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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.
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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…
Please do not give solution in image format thanku
Question 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.
Chapter 5 Solutions
Managerial Accounting
Ch. 5.A - EXERCISE 5A-1 High-Low Method LO5-10 The Cheyenne...Ch. 5.A - EXERCISE 5A-2 Least-Squares Regression LO5-11...Ch. 5.A - EXERCISE 5A-3 Cost Behavior; High-Low Method...Ch. 5.A - Prob. 4ECh. 5.A - EXERCISE 5A-5 Least-Squares Regression LO5-11...Ch. 5.A - Prob. 6PCh. 5.A - Problem 5A-7 Cost Behavior; High-Low Method;...Ch. 5.A - Problem 5A-8 High-Low Method; Predicting Cost...Ch. 5.A - Prob. 9PCh. 5.A - Prob. 10P
Ch. 5.A - Case 5A-11 Mixed Cost Analysis and the Relevant...Ch. 5.A - CASE 5A-12 Analysis of Mixed Costs in a Pricing...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. 1AECh. 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 - Prob. 25PCh. 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 - Prob. 32C
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- Please help me with all answers thankuarrow_forwardok 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 forarrow_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_forwardQuestion 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_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
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