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 | $ | 104,000 | $ | 52,000 | $ | 156,000 |
| Variable expenses | 25,960 | 5,240 | 31,200 | |||
| Contribution margin | $ | 78,040 | $ | 46,760 | 124,800 | |
| Fixed expenses | 91,200 | |||||
| Net operating income | $ | 33,600 | ||||
| Required: | |
| 1. | Compute the overall contribution margin (CM) ratio for the company. |
| 2. | Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) |
| 3. | Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) |
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Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
1st Canadian Edition
978-0132490252, 132490250, 978-0176223311
