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 $ 76,500 51,000 Makeover $178,500 127,500 Total $255,000 178,500 $ 25,500 $ 51,000 61,200 $ 15,300 76,500 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. Prepare a contribution format income statement at the company's break-even point th for the two products. (Do not round intermediate calculations. Round your answers to Engberg Company Contribution Income Statement Claimjumper Makeover Total Net operating income (loss)
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 $ 76,500 51,000 Makeover $178,500 127,500 Total $255,000 178,500 $ 25,500 $ 51,000 61,200 $ 15,300 76,500 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. Prepare a contribution format income statement at the company's break-even point th for the two products. (Do not round intermediate calculations. Round your answers to Engberg Company Contribution Income Statement Claimjumper Makeover Total Net operating income (loss)
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
$ 76,500
51,000
Makeover
$178,500
127,500
Total
$255,000
178,500
$ 25,500
$ 51,000
61,200
$ 15,300
76,500
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.
Transcribed Image Text:Prepare a contribution format income statement at the company's break-even point th
for the two products. (Do not round intermediate calculations. Round your answers to
Engberg Company
Contribution Income Statement
Claimjumper
Makeover
Total
Net operating income (loss)
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