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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 | $ | 110,000 | $ | 55,000 | $ | 165,000 | |||
Variable expenses | 27,400 | 5,600 | 33,000 | ||||||
Contribution margin | $ | 82,600 | $ | 49,400 | 132,000 | ||||
Fixed expenses | 90,480 | ||||||||
Net operating income | $ | 41,520 | |||||||
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.
Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 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. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Engberg Company Contribution Income Statement Claimjumper Makeover Total Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $75,404 $ 37,696 $ 113,100 22,620 90,480 90,480 18,782 $ 56,622 3,838 33,858 Required 2 Required 3
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