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: Claimjumper Makeover Total Sales $ 112,000 $ 56,000 $ 168,000 Variable expenses 34,600 7,400 42,000 Contribution margin $ 77,400 $ 48,600 126,000 Fixed expenses 85,500 Net operating income $ 40,500 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.)

Explanation / Answer

Please find the detailed answer as follows: Lucido Products Contribution Income Statement Claimjumper Makeover Total Sales 76000 38000 114000 Less Variable Costs 23478 5022 28500 Contribution 52522 32978 85500 Fixed Expenses 85500 Net Operating Income 0 Notes: Sales: Makeover = 114000*112000/1668000 = 76000 76000 Jumper = 114000*56000/168000 = 38000 38000 Variable Expenses Makeover = 28500*34600/42000 = 23,478. 23478.57143 Jumper = 28500*7400/42000 = 5022 5022

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