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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: 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 $120,000 29,800 Makeover Total $ 60,000 6,200 $ 53,800 $ 180,000 36,000 Sales Variable expenses $ 90,200 Contribution margin 144,000 Fixed expenses 94,080 $ 49,920 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-even point that shows the appropriate levels of sales for the two products
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