Pad 12:47 PM Time remaining: 1:32:18 2 Lucido Products markets two computer game
ID: 341386 • Letter: P
Question
Pad 12:47 PM Time remaining: 1:32:18 2 Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below Total 159,000 39,750 119,250 83,700 35,550 106,000 32,800 53,000 6,950 73,200 46,050 Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: 1. Compute the overall contribution margin (CM) ratio for the company. CM ratio 751 % 2. Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) break-even S 111,600Explanation / Answer
Answer of question 1 and 2 are correct so solving question 3 here,
To prepare contribution statement at breakeven sales level first we need to find the sales proportion of each product in total sales.
% of Claim jumper in total sales = 106000/159000
= 66.67%
% of Makeover in total sale = 100 – 66.67 = 33.33%
We have already figured out the overall breakeven point sales level = 111600
% of Claim jumper in breakeven sales = 111600 * .6667 = $74403.72
% of Makeover in breakeven sales = 111600 * .3333 = 37196.28
claim jumper
makeover
Total
Sales
74403.72
37196.28
111600
Variable expense
23023.04
4,876.4323
27899.5
Contribution margin
51380.68
32319.85
83700
Fixed expense
83700
Net operating income
0.00
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claim jumper
makeover
Total
Sales
74403.72
37196.28
111600
Variable expense
23023.04
4,876.4323
27899.5
Contribution margin
51380.68
32319.85
83700
Fixed expense
83700
Net operating income
0.00
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