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 $116,000 35,800 $ 80,200 Makeover $ 50,000 7,700 $ 50,300 Required: 1. What is the overall contribution margin (CM) ratio for the company? Total $ 174,000 43,500 130,500 84,600 $:45,900 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.
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 $116,000 35,800 $ 80,200 Makeover $ 50,000 7,700 $ 50,300 Required: 1. What is the overall contribution margin (CM) ratio for the company? Total $ 174,000 43,500 130,500 84,600 $:45,900 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
Problem 1Q
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![Exercise 5-10 (Algo) Multiproduct Break-Even Analysis [LO5-9]
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
$116,000
35,800
$ 80,200
Makeover
$50,000
7,700
$50,300
Required:
1. What is the overall contribution margin (CM) ratio for the company?
Total
$174,000
43,500
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.
Required 1
Required 2 Required 3
What is the overall contribution margin (CM) ratio for the company?
Overall CM ratio
Required 1
130,500
84,600
$45,900
Complete this question by entering your answers in the tabs below.
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb476d682-0c1b-4d81-b957-84480e4ac6fd%2F154a2ed0-c083-40f4-946b-533cb98d8b2a%2Fbb9mq37_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-10 (Algo) Multiproduct Break-Even Analysis [LO5-9]
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
$116,000
35,800
$ 80,200
Makeover
$50,000
7,700
$50,300
Required:
1. What is the overall contribution margin (CM) ratio for the company?
Total
$174,000
43,500
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.
Required 1
Required 2 Required 3
What is the overall contribution margin (CM) ratio for the company?
Overall CM ratio
Required 1
130,500
84,600
$45,900
Complete this question by entering your answers in the tabs below.
Required 2 >
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