Lucido Products markets two computer games: Claimjumper and Makeover. A contribution margin income statement for a recent month for the two games appears as follows:

Required:

1. Compute the overall CM ratio for the company.

2. Compute the overall break-even point for the company in sales dollars.

3. Verify the overall break-even point for the company by constructing an income statement showing the appropriate levels of sales for the two products.

Transcribed Image Text:

Claimjumper Makeover Total $65,000 Sales $150,000 $85,000 Less: Variable expenses 45,000 60,000 105.000 Contribution margin 45,000 $20,000 $25,000 Less: Fixed expenses 36.000 Net income $ 9,000