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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 $ 102,000 $ 51,000 $ 153,000 Variable expenses 31,600 6,650 38,250 Contribution margin $ 70.400 $ 44,350 114,750 Fixed expenses 86,625 Net operating income $ 28,125 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. 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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