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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 $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

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.

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