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 | $112,000 | $56,000 | $168,000 |
Variable expenses | 41,320 | 9,080 | 50,400 |
Contribution margin | $70,680 | $46,920 | 117,600 |
Fixed expenses | 82,320 | ||
Net operating income | 35,280 | ||
Requirement 1: |
Compute the overall contribution margin (CM) ratio for the company. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) |
Overall CM ratio | % |
Requirement 2: |
Compute the overall break-even point for the company in sales dollars. (Omit the "$" sign in your response.) |
Overall break-even | $ |
Requirement 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. (Round your answers to the nearest dollar amount. Do not round your interim calculation. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" and "%" sign in your response.) |
Claimjumper | Makeover | Total | |
Original dollar sales | $ | $ | $ |
Sales at break-even | $ | $ | $ |
Claimjumper | Makeover | Total | |
Sales | $ | $ | $ |
Variable expenses |
|
|
|
Contribution margin | $ | $ | |
Fixed expenses |
| ||
Net operating income | $ |
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