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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: Sales
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Claimjumper $ 102,000 31,600 Makeover $ 51,000 6,650 Contribution margin $ 70,400 $ 44,350 Total $ 153,000 38,250 Fixed expenses Net operating income Required: 114,750 87,525 $ 27,225 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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