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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. Compute the overall contribution margin (CM) ratio for the company..
2. Compute the overall break-even point for the company in dollar sales.
3. Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations.)
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