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 $ 104,000 $ 52,000 $ 156,000 Variable expenses 25,960 5,240 31,200 Contribution margin $ 78,040 $ 46,760 124,800 Fixed expenses 89,760 Net operating income $ 35,040 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.
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 $ 104,000 $ 52,000 $ 156,000 Variable expenses 25,960 5,240 31,200 Contribution margin $ 78,040 $ 46,760 124,800 Fixed expenses 89,760 Net operating income $ 35,040 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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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:
| Claimjumper | Makeover | Total | |
|---|---|---|---|
| Sales | $ 104,000 | $ 52,000 | $ 156,000 |
| Variable expenses | 25,960 | 5,240 | 31,200 |
| Contribution margin | $ 78,040 | $ 46,760 | 124,800 |
| Fixed expenses | 89,760 | ||
| Net operating income | $ 35,040 |
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 1
| Overall CM ratio | % |
Required 2
Overall break-even point .......
Required 3 see doc attached.
Transcribed Image Text: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.)
Net operating income (loss)
Lucido Products
Contribution Income Statement
Claimjumper Makeover
< Required 2
Total
Required 3 >
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