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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 | Makeover | Total | |
---|---|---|---|
Sales | $ 110,000 | $ 55,000 | $ 165,000 |
Variable expenses | 34,000 | 7,250 | 41,250 |
Contribution margin | $ 76,000 | $ 47,750 | 123,750 |
Fixed expenses | 85,500 | ||
Net operating income | $ 38,250 |
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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