Business, 09.07.2019 03:30 countryboy42

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 $ 102,000 $ 51,000 $ 153,000 variable expenses 37,720 8,180 45,900 contribution margin $ 64,280 $ 42,820 107,100 fixed expenses 77,700 net operating income $ 29,400 required: 1. what is the overall contribution margin (cm) ratio for the company? 2. what is the company's overall break-even point in dollar sales? 3. prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.

Answers: 1

Show answers

Answers

Answer from: vjacksongonzalez

1.The overall contribution margin ratio for the company is 0.70.

2. The company's overall break even point in dollar sales is $111,000.

3. Contribution format statement:

Claimjumper Makeover Total

Sales 74000 37000 111000

VC 27365.49025934.50980433300

Contribution 46634.5098 31065.4902 77700

Fixed Costs 77700

Net Income (contribution - fixed costs) 0

We follow these steps to arrive at the

1. Calculation of Contribution margin:

$Contribution Margin = \frac{Total Contribution}{Total Sales}$

$Contribution Margin = \frac{107100}{153000}$

Contribution Margin = 0.70

2. Calculation of Break Even Point in Dollar Sales:

$Break Even Point in dollar sales = \frac{Total Fixed Costs}{Contribution Margin}$

$Break Even Point in dollar sales = \frac{77,700}{0.7}$

Break Even Point in dollar sales = 111000

3. Contribution format income statement

First we find the ratios of Claimjumper's and Makeover's sales to total sales.

Similarly we need to find the ratios of these products' individual variable costs to total variable costs.

Sales:

Claimjumper $\frac{102000}{153000} = \frac{2}{3}$

Makeover $\frac{51000}{153000} = \frac{1}{3}$

Variable Costs

Claimjumper $\frac{37720}{102000} = 0.369803922$

Makeover $\frac{8180}{51000} = 0.160392157$

At breakeven sales, the contribution format for Claimjumper is as follows:

Claimjumper

Sales $111000*\frac{2}{3} = 74000$

less Variable Costs 74000 * 0.369803922 = 27365.4902

Contribution Margin 74000 - 27365.4902 = 46634.5098

At breakeven sales, the contribution format for Makeover is as follows:

Makeover

Sales $111000*\frac{1}{3} = 37000$

less Variable Costs 37000 * 0.160392157 = 5934.509804

Contribution Margin 37000 - 5934.509804 = 31065.4902

Answer from: Quest

the answer is either "loser" or "dumb*ss"

gods, i'm only joking, don't ban me.*

Answer from: Quest

answer; human resource management.(hrm);

Other questions on the subject: Business

Business, 22.06.2019 09:50, sanam3035

For each of the following users of financial accounting information and managerial accounting information, specify whether the user would primarily use financial accounting information or managerial accounting information or both: 1. sec examiner 2. bookkeeping department 3. division controller 4. external auditor (public accounting firm) 5. loan officer at the company's bank 6. state tax agency auditor 7. board of directors 8. manager of the service department 9. wall street analyst 10. internal auditor 11. potential investors 12, current stockholders 13. reporter from the wall street journal 14. regional division managers

Answers: 1

continue

Business, 22.06.2019 21:20, eichlingkera13

Which of the following best explains how trade enables greater specialization among producers? a. trade diversifies the market by bringing specialized goods from around the world. b. trade requires distribution networks and adds one more step to the production process. c. trade enables producers to open up new markets for their goods and services. d. trade allows people to focus on one kind of production and trade for their other needs.

Answers: 1

continue

Business, 22.06.2019 22:40, tonypewitt

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?

Answers: 1

continue

Business, 22.06.2019 23:40, xrenay

Four key marketing decision variables are price (p), advertising (a), transportation (t), and product quality (q). consumer demand (d) is influenced by these variables. the simplest model for describing demand in terms of these variables is: d = k – pp + aa + tt + qq where k, p, a, t, and q are constants. discuss the assumptions of this model. specifically, how does each variable affect demand? how do the variables influence each other? what limitations might this model have? how can it be improved?

Answers: 2

continue

You know the right answer?

Lucido products markets two computer games: claimjumper and makeover. a contribution format income...