Business, 13.07.2020 21:01 Ain805

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 $106,000 $53,000 $159,000
Variable expenses 32,800 6,950 39,750
Contribution margin $73,200 $46,050 119,250
Fixed expenses 82,575
Net operating income $36,675

Requied:

a. Compute the overall contribution margin (CM) ratio for the company.
b. Compute the overall break-even point for the company in sales dollars.
c. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.

Answers: 1

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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income s...