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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 Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $106,000 32,800 $ 73,200 Makeover $ 53,000 6,950 $ 46,050 Total $ 159,000 39,750 119,250 87,525 $ 31,725 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
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