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 $ 108,000 33,400 $ 74,600 Makeover $ 54,000 7,100 $ 46,900 Required: . 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. Sales Variable expenses Contribution margin Complete this question by entering your answers in the tabs below. Fixed expenses Net operating income (loss) Total $ 162,000 40,500 121,500 87,075 $ 34,425 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. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Lucido Products Contribution Income Statement Claimjumper Makeover Total $ 116,100
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 $ 108,000 33,400 $ 74,600 Makeover $ 54,000 7,100 $ 46,900 Required: . 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. Sales Variable expenses Contribution margin Complete this question by entering your answers in the tabs below. Fixed expenses Net operating income (loss) Total $ 162,000 40,500 121,500 87,075 $ 34,425 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. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Lucido Products Contribution Income Statement Claimjumper Makeover Total $ 116,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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