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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 | $ | 112,000 | $ | 56,000 | $ | 168,000 | |||
| Variable expenses | 34,600 | 7,400 | 42,000 | ||||||
| Contribution margin | $ | 77,400 | $ | 48,600 | 126,000 | ||||
| Fixed expenses | 84,600 | ||||||||
| Net operating income | $ | 41,400 | |||||||
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?
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