Question
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 | $ | 114,000 | $ | 57,000 | $ | 171,000 |
Variable expenses | 35,200 | 7,550 | 42,750 | |||
Contribution margin | $ | 78,800 | $ | 49,450 | 128,250 | |
Fixed expenses | 83,925 | |||||
Net operating income | $ | 44,325 | ||||
Required: | |
1. | Compute the overall contribution margin (CM) ratio for the company. |
2. | Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) |
3. | Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) |
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