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10, acct Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears
10, acct
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 | $ | 114,000 | $ | 57,000 | $ | 171,000 | |||
Variable expenses | 28,360 | 5,840 | 34,200 | ||||||
Contribution margin | $ | 85,640 | $ | 51,160 | 136,800 | ||||
Fixed expenses | 90,480 | ||||||||
Net operating income | $ | 46,320 | |||||||
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
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