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Exercise 2-10 (Algo) Multiproduct Break-Even Analysis [LO2-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent
Exercise 2-10 (Algo) Multiproduct Break-Even Analysis [LO2-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Claimjumper $ 118,000 29,320 Contribution margin $ 88,680 $ 52,920 Makeover $ 59,000 6,080 Total $ 177,000 35,400 141,600 92,880 $ 48,720 Fixed expenses Net operating income 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Lucido Products Contribution Income Statement Claimjumper Makeover Total < Required 2 Required 3 >
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