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 $96,000 $48,000 $144,000

Variable Expenses $24,040 $4,760 $28,800

Contribution margin $71,960 $43,240 $115,200

Fixed Expenses $90,000

Net operating income $25,200

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 as the company's break-even point that shows the appropriate level of sales for the the two products.