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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: Claim

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below:

Claim jumper Makeover Total
Sales $ 100,000 $ 50,000 $ 150,000
Variable expenses 25,000 5,000 30,000
Contribution margin $ 75,000 $ 45,000 120,000
Fixed expenses 90,000
Net operating income $ 30,000

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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