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EXERCISE 510 Multiproduct Break-Even Analysis LO59 Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for

EXERCISE 510 Multiproduct Break-Even Analysis LO59 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 $ 30,000 $ 70,000 $ 100,000 Variable expenses 20,000 50,000 70,000 Contribution margin $ 10,000 $ 20,000 30,000 Fixed expenses 24,000 Net operating income $ 6,000 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the companys 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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