Question
5.88 points eBookHintPrintReferencesCheck my workCheck My Work button is now enabledItem 11 Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9] Lucido Products markets two computer games:
5.88 points eBookHintPrintReferencesCheck my workCheck My Work button is now enabledItem 11 Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9] 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 $ 118,000 $ 59,000 $ 177,000 Variable expenses 29,320 6,080 35,400 Contribution margin $ 88,680 $ 52,920 141,600 Fixed expenses 90,240 Net operating income $ 51,360 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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