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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 | $ | 116,000 | $ | 58,000 | $ | 174,000 | |||
Variable expenses | 35,800 | 7,700 | 43,500 | ||||||
Contribution margin | $ | 80,200 | $ | 50,300 | 130,500 | ||||
Fixed expenses | 85,950 | ||||||||
Net operating income | $ | 44,550 | |||||||
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.
What is the overall contribution margin (CM) ratio for the company? Overall CM ratio % What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall break-even point Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Lucido Products Contribution Income Statement Claimjumper Makeover Total Net operating income (loss)Step by Step Solution
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