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 $ 110,000 34,000 $ 76,000 Makeover $ 55,000 7,250 $ 47,750 Total $ 165,000 41,250 123,750 87,300 $36,450 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 $ 110,000 34,000 $ 76,000 Makeover $ 55,000 7,250 $ 47,750 Total $ 165,000 41,250 123,750 87,300 $36,450 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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![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
$ 110,000
34,000
$ 76,000
Required 1
Makeover
$ 55,000
7,250
$ 47,750
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 2 Required 3
Complete this question by entering your answers in the tabs below.
Total
$ 165,000
41, 250
123, 750
87,300
$ 36,450
What is the company's overall break-even point in dollar sales?
Note: Do not round intermediate calculations.
Overall break-even point](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccb668bc-10a4-4aaf-a388-7b2b8ddb3a25%2F517963fd-bf16-4778-ad5a-80910ec86930%2F495p6a9_processed.png&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
Claimjumper
$ 110,000
34,000
$ 76,000
Required 1
Makeover
$ 55,000
7,250
$ 47,750
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 2 Required 3
Complete this question by entering your answers in the tabs below.
Total
$ 165,000
41, 250
123, 750
87,300
$ 36,450
What is the company's overall break-even point in dollar sales?
Note: Do not round intermediate calculations.
Overall break-even point
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