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

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

Claimjumper Makeover Total
Sales $ 65,000 $ 85,000 $ 150,000
Less: Variable expenses 45,000 60,000 105,000
Contribution margin $ 20,000 $ 25,000 45,000
Less: Fixed expenses 36,000
Net income $ 9,000

Required:

1. Compute the overall CM ratio for the company.

2. Compute the overall break-even point for the company in sales dollars.

3. Calculate the overall break-even point for the company by constructing an income statement showing the appropriate levels of sales for the two products.

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