Question
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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