Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please help me solve these 2 questions by 11:59pm tonight it is due then:( I do not understand these 2 questions at all

Can you please help me solve these 2 questions by 11:59pm tonight it is due then:( I do not understand these 2 questions at all so if you could please explain that would be amazing, thank you!!

1)

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 $ 106,000 $ 53,000 $ 159,000
Variable expenses 32,800 6,950 39,750
Contribution margin $ 73,200 $ 46,050 119,250
Fixed expenses 86,850
Net operating income $ 32,400

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.

2) The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month Occupancy-Days Electrical Costs
January 2,640 $ 13,200
February 2,860 $ 14,300
March 980 $ 4,900
April 2,420 $ 12,100
May 2,090 $ 10,450
June 4,470 $ 18,860
July 4,020 $ 17,160
August 3,940 $ 16,760
September 1,630 $ 8,150
October 1,090 $ 5,450
November 1,390 $ 6,950
December 2,910 $ 14,550

Required:

1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago