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 Variable expenses $ 114,000 57,000 $ 171,000 28,360 5,840 34,200 136,800 90,240 $ 46,560 Contribution margin Fixed expenses $ 85,640 $51,160 Net operating income Required 1. Compute the overall contribution margin (CM) ratio for the company. erall CM ratio 2. Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) erall break-even point 3. 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 final answers to the nearest dollar amount.) Lucido Products Contribution Income Statement Claimjumper Makeover Total

Explanation / Answer

1) Overall contribution margin = Contributio margin / sales *100

= 136800 / 171000 *100 = 80%

2) Overall break even point = Fixed costs / COntribution margin %

= 90240 /0.8 = 112800

3)

Claimjumper Makover Total Sales 75200 37600 112800 Less: Variable costs 18707.65 3852.35 22560 COntribution margin 56492.35 33747.65 90240 Fixed expense 90240 Net income 0

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