Question
Lucindo products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper
Lucindo 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 30000 70000 100000
Variable expenses 20000 50000 70000
Contribution margin 10000 20000 30000
Fixed expenses 24000
Net operating income 6000
What is the overall contribution margin ratio for the company?
What is the company's overall break-even point in dollar sales?
Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products
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