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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 . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000 $70,000 $100,000 Variable expenses. . . . . . . . . . . . . . . . 20,000 50,000 70,000 Contribution margin . . . . . . . . . . . . . . $10,000 $20,000 30,000 Fixed expenses . . . . . . . . . . . . . . . . . . 24,000 Net operating income. . . . . . . . . . . . . $ 6,000 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the companys overall break-even point in dollar sales? 3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products
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