Question
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.)
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