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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:
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 Clainjumper $108,000 33,400 Makeover $ 54,000 7,100 Total $ 162,000 40,500 Contribution margin $ 74,600 $ 46,900 121,500 85,950 $ 35,550 Fixed expenses Net operating income 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-en point that shows the appropriate levels of sales for the two products.
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