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Lacrimosa Products markets two computer games: Mona and Ralphio. A contribution format income statement for a recent month for the two games appears below: this
Lacrimosa Products markets two computer games: Mona and Ralphio. A contribution format income statement for a recent month for the two games appears below: this is all info given
Mona | Ralphio | Total | |||||||
Sales | $ | 116,000 | $ | 58,000 | $ | 174,000 | |||
Variable expenses | 35,800 | 7,700 | 43,500 | ||||||
Contribution margin | $ | 80,200 | $ | 50,300 | 130,500 | ||||
Fixed expenses | 86,400 | ||||||||
Net operating income | $ | 44,100 | |||||||
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.
Contribution Income Statement Claimjumper Makeover Total $ 0 0 $ 0 $ 0 0 Net operating income (loss)Step by Step Solution
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