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 Required: Claimjumper Makeover $ 112,000 $ 56,000 34,600 7,400 $ 77,400 $ 48,600 Total $ 168,000 42,000 126,000 88,425 $ 37,575 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 Required: Claimjumper Makeover $ 112,000 $ 56,000 34,600 7,400 $ 77,400 $ 48,600 Total $ 168,000 42,000 126,000 88,425 $ 37,575 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
Related questions
Question
![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
Required:
Claimjumper
Makeover
$ 112,000 $ 56,000
34,600
7,400
$ 77,400 $ 48,600
Total
$ 168,000
42,000
126,000
88,425
$ 37,575
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff49efc5c-89b9-459b-ad91-ffe0a49d0a16%2F4493a895-ab31-4276-b90c-2001dc2c876d%2F6fdy5he_processed.jpeg&w=3840&q=75)
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
Required:
Claimjumper
Makeover
$ 112,000 $ 56,000
34,600
7,400
$ 77,400 $ 48,600
Total
$ 168,000
42,000
126,000
88,425
$ 37,575
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.
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