Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
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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 Claimjumper $ 114,000 Makeover $ 57,000 Total $ 171,000 35,200 7,550 42,750 $ 78,800 $ 49,450 128,250 85,500 $ 42,750 Net operating income 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. 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 Claimjumper $ 114,000 Makeover $ 57,000 Total $ 171,000 35,200 7,550 42,750 $ 78,800 $ 49,450 128,250 85,500 $ 42,750 Net operating income 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.
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Answer rating: 100% (QA)
Answer 1 To calculate the overall contribution margin CM ratio for the company we need to divide the total contribution margin by the total sales Over... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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