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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

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 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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