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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:
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 Contribution margin Fixed expenses Claimjumper $ 114,000 Makeover $ 57,000 Total $ 171,000 35,200 7,550 42,750 $ 78,800 $ 49,450 128,250 85,500 $ 42,750 Net operating income 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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Answer 1 To calculate the overall contribution margin CM ratio for the company we need to divide the total contribution margin by the total sales Over...Get Instant Access to Expert-Tailored Solutions
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