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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 98,000 49,000 147,000

Variable Expenses 30,400 6,350 36,750

Contribution Margin 67,600 42,650 110,250

Fixed Expenses 86,850

Net Operating income 23,400

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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