Exercise 2-10 (Algo) Multiproduct Break-Even Analysis [LO2-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 108,000 33,400 $ 74,600 Makeover $ 54,000 7,100 $ 46,900 Total $ 162,000 40,500 121,500 85,725 $ 35,775 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.
Exercise 2-10 (Algo) Multiproduct Break-Even Analysis [LO2-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 108,000 33,400 $ 74,600 Makeover $ 54,000 7,100 $ 46,900 Total $ 162,000 40,500 121,500 85,725 $ 35,775 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 2-10 (Algo) Multiproduct Break-Even Analysis [LO2-9]
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a
recent month for the two games appears below:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Claimjumper
$ 108,000
33,400
$ 74,600
Makeover
$ 54,000
7,100
$ 46,900
Total
$ 162,000
40,500
121,500
85,725
$ 35,775
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 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.
Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84fefd46-9e74-4d61-9ac5-d103349d245d%2Fb3e0cbd7-efe4-49e3-a476-fe3ce2b71d17%2F2oqcutf_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 2-10 (Algo) Multiproduct Break-Even Analysis [LO2-9]
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a
recent month for the two games appears below:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Claimjumper
$ 108,000
33,400
$ 74,600
Makeover
$ 54,000
7,100
$ 46,900
Total
$ 162,000
40,500
121,500
85,725
$ 35,775
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 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.
Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.
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