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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 | $ 94,000 | $ 47,000 | $ 141,000 |
Variable expenses | 29,200 | 6,050 | 35,250 |
Contribution margin | $ 64,800 | $ 40,950 | 105,750 |
Fixed expenses | 87,750 | ||
Net operating income | $ 18,000 |
Required:
- What is the company's overall contribution margin (CM) ratio?-------75%
- What is the company's overall break-even point in dollar sales?----$117,000
- Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount
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