Question

Complete this question by entering your answers in the tabs below. Required 1 | Required 2 Required 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. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Engberg Company Contribution Income Statement Claimjumper Makeover Total $ | $ 0 $ Net operating income (loss)

Answer 1

Solution

Contribution margin ratio

80%

.

Overall Break-even point

$ 114,600.00

.

Engberg Company
Contribution income statement
	Claimjumper	Makeover	Total
Sales	$          76,400	$              38,200	$        114,600
Variable expenses	$          19,006	$                 3,914	$           22,920
Contribution margin	$          57,394	$              34,286	$           91,680
Fixed cost			$           91,680
Net operating income (loss)			$                    -

Working

	Total
Sales	$ 171,000.00
Variable expenses	$    34,200.00
Contribution margin	$ 136,800.00
Contribution margin ratio (136800/171000)	80%
Fixed cost	$    91,680.00
Overall Break-even point (91680/80%)	$ 114,600.00

.

Contribution income statement
	Claimjumper	Makeover
Sales	=114000/171000*114600	=57000/171000*114600
Variable expenses	=28360/114000*76400	=5840/57000*38200