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Exercise 5-10 (Algo) Multiproduct Break-Even Analysis (LO5-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month
Exercise 5-10 (Algo) Multiproduct Break-Even Analysis (LO5-9] 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 Contribution margin Fixed expenses Net operating income Claimjumper $ 112,000 27, 880 $ 84, 120 Makeover $ 56,000 5,720 $ 50, 280 Total $ 168,000 33, 600 134, 400 93, 360 $ 41, 040 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. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Lucido Products Contribution Income Statement Claimjumper Makeover Sales S 75,040 $ 18,480 $ Variable expenses 18,680 1,888 Contribution margin S 56,360 S 16,592 Fixed expenses Net operating income (loss) S Total 93,520 20.568 72,952 72,925 0 Required 2 Required 3
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