Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

What are correct calculations for variable expenses and contribution margins? Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format Income statement for

image text in transcribed

What are correct calculations for variable expenses and contribution margins?

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format Income statement for a recent month for the two games appears below: sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 102,888 25,480 $ 76,520 Makeover $ 51,000 5,120 $ 45,880 Total $ 153,000 30, 600 122,400 93,840 $ 28,560 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 not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 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.) Total S 117,300 Lucido Products Contribution Income Statement Claimjumper Makeover Sales $ 78,200 S 39.100 Variable expenses 15,640 X 7.820 Contribution margin $ 62,560 S 31,280 Fixed expenses Net operating income (loss) 23,460 93,840 93,840

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Decision Emphasis

Authors: Germain Boer, Debra Jeter

5th Edition

0759341559, 978-0759341555

More Books

Students explore these related Accounting questions