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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: Prepare
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 4,416 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 22% ? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6% ? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 6%
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