Exercise 5-10 Compute the Break-Even Point for a Multiproduct Company [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:

	Claimjumper		Makeover		Total
Sales	$	110,000	$	55,000	$	165,000
Variable expenses		27,400		5,600		33,000
Contribution margin	$	82,600	$	49,400		132,000
Fixed expenses						89,520
Net operating income					$	42,480

Required:

1.

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

Overall CM ratio

%

2.

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

Overall break-even point

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 final answers to the nearest dollar amount.)

Lucido Products
Contribution Income Statement
	Claimjumper	Makeover	Total
Sales			$0
Variable expenses			0
Contribution margin	$0	$0	0
Fixed expenses
Net operating income			$0