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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 | $ 112,000 | $ 56,000 | $ 168,000 |
Variable expenses | 41,320 | 9,080 | 50,400 |
Contribution margin | $ 70,680 | $ 46,920 | 117,600 |
Fixed expenses | 79,590 | ||
Net operating income | $ 38,010 |
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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