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 29,800 $ 90,200 Makeover $ 60,000 6,200 $ 53,800 Total $ 180,000 36,000 144,000 89,040 $ 54,960 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.
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 29,800 $ 90,200 Makeover $ 60,000 6,200 $ 53,800 Total $ 180,000 36,000 144,000 89,040 $ 54,960 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
Problem 1Q
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Transcribed Image Text: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
29,800
$ 90,200
Required 1 Required 2
Makeover
$ 60,000
6,200
$ 53,800
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.
Required 3
Complete this question by entering your answers in the tabs below.
%
Total
$ 180,000
36,000
What is the overall contribution margin (CM) ratio for the company?
Overall CM ratio
144,000
89,040
$ 54,960
Transcribed Image Text: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 Requires 2 Required 3
What is the company's overall break-even point in dollar sales? (Do not round intermediate calcu
Overall break-even point
< Required 1
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 th
for the two products. (Do not round intermediate calculations. Round your answers to the nearest
Lucido Products
Contribution Income Statement
Net operating income (loss)
Claimjumper Makeover
Required 3 >
< Required 2
Total
+
Required 3 >
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