Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper $ 120,000 37,000 Makeover Total $ 60,000 8,000 $ 180,000 Sales Variable expenses 45,000 Contribution margin $ 83,000 $ 52,000 135,000 Fixed expenses 83,475 Net operating income $ 51,525 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: Claimjumper $ 120,000 37,000 Makeover Total $ 60,000 8,000 $ 180,000 Sales Variable expenses 45,000 Contribution margin $ 83,000 $ 52,000 135,000 Fixed expenses 83,475 Net operating income $ 51,525 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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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent
month for the two games appears below:
Claimjumper
$ 120,000
37,000
Makeover
Total
$ 60,000
8,000
$ 52,000
$ 180,000
45,000
Sales
Variable expenses
Contribution margin
$ 83,000
135,000
Fixed expenses
83,475
Net operating income
$ 51,525
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
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
Net operating income (loss)
< Required 2
Required 3 >
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