Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format incomestatement for a recent month for the two games appears below:Claimjumper Makeover TotalSales ............................................ $30,000 $70,000 $100,000Variable expenses ...................... 20,000 50,000 70,000Contribution margin ..................... $10,000 $20,000 30,000Fixed expenses .......................... 24,000Net operating income .................. $ 6,000Required:1. Compute the overall contribution margin (CM) ratio for the company.2. Compute the overall break-even point for the company in sales dollars.3. Verify the overall break-even point for the company by constructing a contribution format incomestatement showing the appropriate levels of sales for the two products.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 Makeover Total
Sales ............................................ $30,000 $70,000 $100,000
Variable expenses ...................... 20,000 50,000 70,000
Contribution margin ..................... $10,000 $20,000 30,000
Fixed expenses .......................... 24,000
Net operating income .................. $ 6,000
Required:
1. Compute the overall contribution margin (CM) ratio for the company.
2. Compute the overall break-even point for the company in sales dollars.
3. Verify the overall break-even point for the company by constructing a contribution format income
statement showing the appropriate levels of sales for the two products.

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