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: 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 $ 120,000 $ 60,000 $ 180,000 Variable expenses 37,000 8,000 45,000 Contribution margin $ 83,000 $ 52,000 135,000 Fixed expenses 85,275 Net operating income $ 49,725
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-even point that shows the appropriate levels of sales for the two products.
Required 2 Required 3 Required 1 Prepare a Contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) $ 120,000 0 $ 60.000 6 $ 130,000 9 23,372 9 37,900 9 113,700 Q $ 52.428 0 $ 32.847 0 85,275 0 85,275 0 \\Iet operating income (loss) $ 0 0 Sales Variable expenses Contribution margin :ixed expensesStep by Step Solution
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