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

Question

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below:

1. Complete the contribution format income statement 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 nearest dollar amount.)

Claimjumper Makeover Total Sales $ 98,000 $ 49,000 $ 147,000 Variable expenses 30,400 6,350 36,750 Contribution margin $ 67,600 $ 42,650 110,250 Fixed expenses 87,750 Net operating income $ 22,500

Explanation / Answer

Weighted Contribution margin rate: Total contribution/ Total sales *100 110250/147000 *100 = 75% Break even Point in $: Fixed cost/ Weighted Contribution margin ratio *100 87750/ 75 *100 = 117000 Sales mix of total product is 98:49 i.e. 2:1 Hence, Sales of two products at Break even is as follwos: Product Claim Jumper: 117000 *2/3 = $78000 Product Makeover: 117000*1/3 = $39000

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.