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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: 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 Contribution margin Fixed expenses Net operating income Claimjumper $ 30,000 20,000 $ 10,000 Makeover $ 70,000 50,000 $ 20,000 Required: 1. What is the overall contribution margin (CM) ratio for the company? Total $ 100,000 70,000 30,000 24,000 $ 6,000 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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