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	$	104,000	$	52,000	$	156,000
Variable expenses		25,960		5,240		31,200
Contribution margin	$	78,040	$	46,760		124,800
Fixed expenses						91,200
Net operating income					$	33,600

Required:
1.	Compute the overall contribution margin (CM) ratio for the company.

     

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.)

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 answers to the nearest dollar amount.)

Lucido Products
Contribution Income Statement
	Claimjumper	Makeover	Total
			$0
			0
	$0	$0	0
			$0

Answer 1