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 TotalSales
$116,000 $58,000 $174,000
Variable expenses 35,800 7,700 43,500
Contribution margin $80,200 $50,300 130,500
Fixed expenses 84,375
Net operating income $46,125
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. Show a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
I know the answers for #1 and #2 but I'm having a problem with #3. I have the table set up correctly but the #'s aren't right.
CM is 75% break-even $ 112,500
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