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 | $ | 108,000 | $ | 54,000 | $ | 162,000 |
Variable expenses | 33,400 | 7,100 | 40,500 | |||
Contribution margin | $ | 74,600 | $ | 46,900 | 121,500 | |
Fixed expenses | 84,150 | |||||
Net operating income | $ | 37,350 | ||||
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. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) |
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. Round your final answers to the nearest dollar amount.) |
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