Question
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 Contribution margin Claimjumper $ 108,000 33,400 Makeover $ 54,000 7,100 $ 74,600 $ 46,900 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? Total $ 162,000 40,500 121,500 86,175 $ 35,325 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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