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 $118,000 59,000 177,000
variables expenses 43,480 9,620 53,100
Contribution margin $74,520 $49,380 123,900
fixed expenses 80,430
Net Operating Income $43,470
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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