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 :
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 Sales $104,000 Makeover Sales $ 52,000 Total $156000 Claimjumper Variable expense $32,200 Makeover variable expense $6,800 Total $39000 Claimjumper Contribution margin $71,800 Makeover contribution margin $45,200 Total $117000 Fixed expense $84,825 Net operating income $32,175 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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