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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 | $112000 | $56000 | $168000 |
variable expense | 34600 | 7400 | 42000 |
contribution margin | $77400 | $48600 | 126000 |
fixed expenses | 88425 | ||
net operating income | $37575 |
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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