Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement fora recent month for the two games appears below: Claimjumper Makeover Total Sales $ 102,000 $51,000 $ 153,000Variable expenses 31,600 6,650 38, 250 Contribution margin $ 70,400 $ 44,350 114,750 Fixed expenses 87, 525 Netoperating income $27,225 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What isthe company's overall break - even point in dollar sales? 3. Prepare a contribution format income statement at thecompany's break - even point that shows the appropriate levels of sales for the two products.

ExplanationStep 1:Breakeven point of sales is the level of sales where total sales is equals to the…

Answered: Lucido Products markets two computer…

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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Please check my answers. Thank you Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 84,800 units during the year. Cover-to-CoverCompany Biblio FilesCompany Contribution margin ratio (percent) 20 40 Unit contribution margin 1 2 Break-even sales (units) 21,200 127,200 Break-even sales (dollars) 106,000 636,000
Complete each of the following contribution format income statements by supplying the missing numbers. a. b. c. d. Sales revenue $enter the sales revenue amount in dollars $504,696 $enter the sales revenue amount in dollars $671,472 Variable expenses 236,284 enter the variable expenses amount in dollars 123,704 enter the variable expenses amount in dollars Contribution margin 150,052 156,624 enter the contribution margin in dollars 490,336 Fixed expenses enter the fixed expenses amount in dollars 87,320 138,084 enter the fixed expenses amount in dollars Operating income 20,502 enter the operating income amount in dollars enter the operating income amount in dollars enter the operating income amount in dollars Income taxes enter the income tax amount in dollars 20,791 20,278 63,805 Net income $14,351 $enter the net income amount in dollars $60,834 $191,415
a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 35.00 19.00 $ 16.00 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 276,500 150,100 126,400 54,100 $ 72,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
3) Popular Inc. produces and sells two products. During the most recent month, Pen's sales were $24,000 and its variable expenses were $7,920. Pencil's sales were $41,000 and its variable expenses were $14,180. The company's fixed expenses were $40,350. Required: a. Prepare a contribution format income statement for the business. b. Determine the overall break-even point for the company in total sales dollars. c. Verify your answer of requirement b by constructing a contribution income statement.
eBook Show Me How Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses b. What is McDonald's contribution margin ratio? % Operating income Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. < a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) million $34,900 $(12,194) (8,800) (7,756) (5,100) $(33,850) $1,050 se Check My Work 2 more Check My Work uses remaining. c. How much would operating income increase if same-store sales increased by $2,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million All work saved. Previous Next B
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Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,500 units) $ 94,500 Variable expenses 41,580 Contribution margin 52,920 Fixed expenses 40,700 Net operating income $ 12,220 If the company sells 3,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $52,920 $57,456 $71,700 $13,267
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