Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: ClaimjumperMakeoverTotalSales$ 104,000$ 52,000$ 156,000Variable expenses25,9605,24031,200Contribution margin$ 78,040$ 46,760124,800Fixed expenses 89,760Net 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 1Overall CM ratio%Required 2Overall break-even point .......Required 3 see doc attached. **Instructions for Completing the Contribution Format Income Statement****Task Overview:**Prepare a contribution format income statement at Lucido Products' break-even point, displaying the sales levels for two products: Claimjumper and Makeover. Ensure all calculations are accurately rounded to the nearest dollar, and avoid rounding any intermediate calculations.**Steps:**1. **Access the Required Tab:** - Navigate through the tabs labeled Required 1, Required 2, and Required 3 to input and complete the necessary data.2. **Contribution Income Statement Structure:** - The statement is divided into columns for Claimjumper, Makeover, and Total. - Each column requires input for determining the net operating income or loss.3. **Input Areas:** - Fill out the designated lines for each product and the total category with appropriate financial figures based on company sales data.4. **Net Operating Income (Loss):** - Calculate the net operating income or loss by total sales and expenses for the products combined.This exercise is crucial for understanding how product-specific sales performance impacts overall financial health at the break-even point.

The contribution margin is calculated as difference between sales and variable costs. The break even…

Answered: Products markets two computer games:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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:

	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.

**Instructions for Completing the Contribution Format Income Statement**

**Task Overview:**
Prepare a contribution format income statement at Lucido Products' break-even point, displaying the sales levels for two products: Claimjumper and Makeover. Ensure all calculations are accurately rounded to the nearest dollar, and avoid rounding any intermediate calculations.

**Steps:**

1. **Access the Required Tab:**
- Navigate through the tabs labeled Required 1, Required 2, and Required 3 to input and complete the necessary data.

2. **Contribution Income Statement Structure:**
- The statement is divided into columns for Claimjumper, Makeover, and Total.
- Each column requires input for determining the net operating income or loss.

3. **Input Areas:**
- Fill out the designated lines for each product and the total category with appropriate financial figures based on company sales data.

4. **Net Operating Income (Loss):**
- Calculate the net operating income or loss by total sales and expenses for the products combined.

This exercise is crucial for understanding how product-specific sales performance impacts overall financial health at the break-even point.

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