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 | 85,500 | ||||||||
Net operating income | $ | 42,750 | |||||||
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.
Required 1
Required 2
Required 3
What is the overall contribution margin (CM) ratio for the company?
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Required 2
Required 3
What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.)
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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.)
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