Exercise 3-10 Compute the Break-Even Point for a Multiproduct Company [LO3-9]

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 $ 94,000 $ 47,000 $ 141,000 Variable expenses 29,200 6,050 35,250 Contribution margin $ 64,800 $ 40,950 105,750 Fixed expenses 86,400 Net operating income $ 19,350

Required:

1. Compute the overall contribution margin (CM) ratio for the company.

2. Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

3. Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Lucido ProductsContribution Income StatementClaimjumperMakeoverTotal