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EXERCISE 5-10 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
EXERCISE 5-10 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 Claimjumper Makeover Total Sales Variable expenses Contribution margin $30,000 $70,000 $100,000 20000 5,000 70,000 $10,000 $20,000 30,000 24,000 S 6,000 Net operating income Required: I. 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. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products
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