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 $98,000 $49,000 $147,000
Variable expenses 24,520 4,880 29,400
Contribution margin $73,480 $44,120 117,600
Fixed expenses 93,360
Net operating income $24,240
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.