Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9] 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 Makeover $ 120,000 $ 60,000 44,200 9,800 $ 75,800 $ 50,200 Total $ 180,000 54,000 126,000 81,060 $ 44,940 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.
Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9] 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 Makeover $ 120,000 $ 60,000 44,200 9,800 $ 75,800 $ 50,200 Total $ 180,000 54,000 126,000 81,060 $ 44,940 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9]
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
$ 120,000
44,200
$ 75,800 $50, 200
Required 1
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.
A
Complete this question by entering your answers in the tabs below.
Overall CM ratio
Makeover
$ 60,000
9,800
Required 2 Required 3
Total
$ 180,000
54,000
126,000
81,060
$ 44,940
What is the overall contribution margin (CM) ratio for the company?
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32cacf8d-6787-452f-8369-5478af598000%2Fa786cc4a-c090-43da-b20b-9a623b50c894%2Fxa166hh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9]
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
$ 120,000
44,200
$ 75,800 $50, 200
Required 1
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.
A
Complete this question by entering your answers in the tabs below.
Overall CM ratio
Makeover
$ 60,000
9,800
Required 2 Required 3
Total
$ 180,000
54,000
126,000
81,060
$ 44,940
What is the overall contribution margin (CM) ratio for the company?
%
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