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
$
116,000
$
58,000
$
174,000
Variable expenses
35,800
7,700
43,500
Contribution margin
$
80,200
$
50,300
130,500
Fixed expenses
88,425
Net operating income
$
42,075
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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