Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $30,000 $70,000 $100,000 Variable expenses 20,000 50,000 70,000 Contribution margin $10,000 $20,000 30,000 24,000 Fixed expenses Net operating income $6,000 Requirement 1: Compute the overall contribution margin (CM) ratio for the company. (Round your answer to the nearest whole percent. Omit the "%" sign In your response.) Overall CM ratio Requirement 2: Compute the overall break-even point for the company in sales dollars. (Omit the "$" sign in your response.) 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 your answers to the nearest dollar amount. Do not round your Interim calculation. Leave no cells blank - be certain to enter "O" wherever required. Omit the "$" and "%" sign in your response.) Original dollar sales Sales at break-even Sales Variable expenses Claimjumper Makeover Total S $ $ S Claimjumper Makeover Total $ S Contribution margin S S Fixed expenses Net operating income Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $30,000 $70,000 $100,000 Variable expenses 20,000 50,000 70,000 Contribution margin $10,000 $20,000 30,000 24,000 Fixed expenses Net operating income $6,000 Requirement 1: Compute the overall contribution margin (CM) ratio for the company. (Round your answer to the nearest whole percent. Omit the "%" sign In your response.) Overall CM ratio Requirement 2: Compute the overall break-even point for the company in sales dollars. (Omit the "$" sign in your response.) 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 your answers to the nearest dollar amount. Do not round your Interim calculation. Leave no cells blank - be certain to enter "O" wherever required. Omit the "$" and "%" sign in your response.) Original dollar sales Sales at break-even Sales Variable expenses Claimjumper Makeover Total S $ $ S Claimjumper Makeover Total $ S Contribution margin S S Fixed expenses Net operating income
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Evaluate the Budget and Financial Plan: Discuss the results of your budget plan with Mr. Williams. Identify any areas where actual spending may differ from planned amounts. Negotiate Changes: Work...
-
what role do internal controls and capital play within a competitive firm? how can a firm better utilize and manage its assets and liabilities? what role do regulations play within the marketplace?...
-
You are a Network Engineer in ABC Network Solutions. Your reporting manager has assigned you to develop a network for the offices in the organization. Assume that there are 4 offices, Human Resource,...
-
You are attempting to arrive at what the monthly rate of change that has recently occurred in the real estate market. In doing some market research, you find two properties that have sold twice...
-
Identify the tax issue or issues suggested by the following situation, and state each issue in the form of a question. Firm Z is considering implementing a long-term tax strategy to accelerate the...
-
Acadia Inc. owns the following long-lived assets: Instructions (a) Prepare depreciation adjusting entries for each asset for the year ended December 31, 2018, assuming the company uses straight-line...
-
In the context of a feasibility study, technical feasibility refers to whether a. a proposed system is attainable, given the existing technology. b. the systems manager can coordinate and control the...
-
Your company is deciding to expand to the following countries, and you and two other managers will have to visit these countries to set up operations. You have $1,500.00 to convert in each currency....
-
3. A company's gross salary amounts to $10,000 for the week ended July 11. Amounts deducted from the employees' salaries are CPP of $495, EI of $188, and employee income tax of $3,465. The employer'...
-
Evaluate the integral using Integration by Partsisubstitution, or both if necessary. In(In 10x) dx = +C 10x
-
What factors have affected (and will continue to affect) the growth of health psychology? What were Freud's major psychological contributions to Health Psychology? Compare and contrast the...
-
After reading the LMDC and Multi-site reports, examine the issues related to inmate deaths occurring in the LMDC facilities. Then, find at least three (3) peer-reviewed articles that demonstrate...
-
You are called in to make an examination of the CALEB Company as of December 1, 2015. The Company has been in existence for 6 years and has not been audited before. The books have not been closed....
-
Which inventory method was used to calculate cost of goods sold, based on the information above?
-
7 [5 points]. Our company makes and sells a single product. We are currently working on our 2021 budgets. We started by estimating unit sales (data for January April is below; March unit sales...
-
A firm considers to buy a machine in 2020. The cost of the machine is $ 3 000 000 which will be paid in 2020. The economic lifetime of the machine is 5 years (the machine will generate cashflows fort...
-
Why did management adopt the new plan even though it provides a smaller expected number of exposures than the original plan recommended by the original linear programming model?
-
Use this website to review the outline of the Bank of Japans objectives. Summarize the mission of the Bank of Japan. How does this mission relate to intervening in the foreign exchange market?
-
As MADD executive director Chuck Hurley describes it, Before the 1980s, drunk driving was how people got home. It was normal behavior. In May of that year, Candy Lightner's 13-year-old daughter was...
-
In the early 1990s, most programs that were working to alleviate homelessness in American cities followed a similar model. Homeless men and women could visit shelters, but could not obtain permanent...
Study smarter with the SolutionInn App