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 Makeover $ 118,000 36,400 $ 59,000 7,850 $ 81,600 $ 51,150 Total $ 177,000 44,250 132,750 83,700 $ 49,050 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.
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 Makeover $ 118,000 36,400 $ 59,000 7,850 $ 81,600 $ 51,150 Total $ 177,000 44,250 132,750 83,700 $ 49,050 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.
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 Makeover
$ 118,000 $ 59,000
36,400 7,850
$ 81,600 $ 51,150
Total
$ 177,000
44,250
132,750
83,700
$ 49,050
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.)
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