Question
Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent
Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9] 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 Claimjumper $ 108,000 39,880 Makeover $ 54,000 8,720 Total $ 162,000 Contribution margin $ 68,120 $ 45,280 48,600 113,400 79,380 $ 34,020 Fixed expenses Net operating income 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 What is the overall contribution margin (CM) ratio for the company? Overall CM ratio % < Required 1 Required 2 >
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