Lucido Products markets two computor games: Claimjumper and Makeover. A contribu

Question

Lucido Products markets two computor games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below Total $ 102,000 $51,000 $ Variable expenses 3.6000153,000 6,650 $ 70,40044,350 Contribution margin Fixod expenses Net operating 114,750 83,700 S 31,050 income 1. Compute the overall contribution margin (CM) ratio for the company. 2. Compute the overalil break-even point for the company in dollar sales. (Do not round Intermediate calculations. Round your answer to the nearest dollar amount.) , 113, 2/3, 114, 3/5, etc.) NOT as a percentage (for example, 33%, 67%, 25%, 60%, etc.) NOTE for Part 3: Calculat te the sales mix of each product as a fraction of Total Sales (for example 3. Complete the contribution t at break even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearost dolar amount) inco ucts Contribution Income Statement

Explanation / Answer

Part 1

Overall CM ratio = total contribution / total sales = 114750/153000 = 75%

Part 2

Overall Breakeven point = fixed expenses / overall contribution CM ratio = 83700/75% = 111600

Part 3

Contribution income statement

74400

(111600*2/3)

(102000/153000) = 2/3

37200

(111600*1/3)

(51000/153000)=1/3

23049

(74400/102000)*31600

4851

(37200/51000)*6650

Claimjumper makeover total Sales

74400

(111600*2/3)

(102000/153000) = 2/3

37200

(111600*1/3)

(51000/153000)=1/3

111600 Less: Variable expense

23049

(74400/102000)*31600

4851

(37200/51000)*6650

27900 Contribution margin 51351 32349 83700 Less: Fixed expenses 83700 Net income 0

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