4. Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games are as follows: Claimjumper Makeover $30,000 20,000 $10,000 Total Sales Variable expenses Contribution Margin Fixed expenses Net Operating Income $70,000 $100,000 70,000 30,000 24,000 $ 6,000 50,000 $20,000 Required: 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.

4. Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games are as follows: Claimjumper Makeover $30,000 20,000 $10,000 Total Sales Variable expenses Contribution Margin Fixed expenses Net Operating Income $70,000 $100,000 70,000 30,000 24,000 $ 6,000 50,000 $20,000 Required: 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Lucido products markets two computer games: claimjumper and makeover. A contribution format income statement for a recent month for the two games appears in top of picture. prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
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