Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for...
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Accounting
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
$
104,000
$
52,000
$
156,000
Variable expenses
32,200
6,800
39,000
Contribution margin
$
71,800
$
45,200
117,000
Fixed expenses
86,175
Net operating income
$
30,825
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.
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