Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
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 Claimjumper $ 116,000 42,760 Makeover $ 58,000 9,440 Total $ 174,000 52,200 Contribution margin Fixed expenses $ 73,240 $ 48,560 121,800 77,280 Net operating income $ 44,520 Required: 1. Compute the overall contribution margin (CM) ratio for the company. Overall CM ratio 70% 2. Compute the overall break-even point for the company in dollar sales. (Do not round intermediate culations. Round your final answer to the nearest dollar amount.) Overall break-even point $ 110,400 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 final answers to the nearest dollar amount.) Total Lucido Products Contribution Income Statement Claimjumper Makeover Sales Variable expenses Contribution margin 0 $ Fixed expenses Net operating income 0 77,280 (77,280) $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started