Business, 09.07.2019 03:30 countryboy42

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 $ 102,000 $ 51,000 $ 153,000 variable expenses 37,720 8,180 45,900 contribution margin $ 64,280 $ 42,820 107,100 fixed expenses 77,700 net operating income $ 29,400 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.

Answers: 1

Show answers

Answers

Answer from: vjacksongonzalez

1.The overall contribution margin ratio for the company is 0.70.

2. The company's overall break even point in dollar sales is $111,000.

3. Contribution format statement:

Claimjumper Makeover Total

Sales 74000 37000 111000

VC 27365.49025934.50980433300

Contribution 46634.5098 31065.4902 77700

Fixed Costs 77700

Net Income (contribution - fixed costs) 0

We follow these steps to arrive at the

1. Calculation of Contribution margin:

$Contribution Margin = \frac{Total Contribution}{Total Sales}$

$Contribution Margin = \frac{107100}{153000}$

Contribution Margin = 0.70

2. Calculation of Break Even Point in Dollar Sales:

$Break Even Point in dollar sales = \frac{Total Fixed Costs}{Contribution Margin}$

$Break Even Point in dollar sales = \frac{77,700}{0.7}$

Break Even Point in dollar sales = 111000

3. Contribution format income statement

First we find the ratios of Claimjumper's and Makeover's sales to total sales.

Similarly we need to find the ratios of these products' individual variable costs to total variable costs.

Sales:

Claimjumper $\frac{102000}{153000} = \frac{2}{3}$

Makeover $\frac{51000}{153000} = \frac{1}{3}$

Variable Costs

Claimjumper $\frac{37720}{102000} = 0.369803922$

Makeover $\frac{8180}{51000} = 0.160392157$

At breakeven sales, the contribution format for Claimjumper is as follows:

Claimjumper

Sales $111000*\frac{2}{3} = 74000$

less Variable Costs 74000 * 0.369803922 = 27365.4902

Contribution Margin 74000 - 27365.4902 = 46634.5098

At breakeven sales, the contribution format for Makeover is as follows:

Makeover

Sales $111000*\frac{1}{3} = 37000$

less Variable Costs 37000 * 0.160392157 = 5934.509804

Contribution Margin 37000 - 5934.509804 = 31065.4902

Answer from: Quest

The answer may be c ..

Answer from: Quest

looks

Another question on Business

Business, 21.06.2019 21:00

Accublade castings inc. casts blades for turbine engines. within the casting department, alloy is first melted in a crucible, then poured into molds to produce the castings. on may 1, there were 230 pounds of alloy in process, which were 60% complete as to conversion. the work in process balance for these 230 pounds was $32,844, determined as follows: exercises during may, the casting department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. factory overhead is applied to the department at a rate of 150% of direct labor. the department transferred out 2,530 pounds of finished castings to the machining department. the may 31 inventory in process was 44% complete as to conversion. prepare the following may journal entries for the casting department: the materials charged to production the conversion costs charged to production the completed production transferred to the machining department determine the work in process"casting department may 31 balance.

Answers: 1

Answer

Business, 22.06.2019 17:40

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)

Answers: 3

Answer

Business, 22.06.2019 20:00

Double corporation acquired all of the common stock of simple company for

Answers: 1

Answer

Business, 22.06.2019 21:00

The purpose of the transportation approach for location analysis is to minimize which of the following? a. total costsb. total fixed costsc. the number of shipmentsd. total shipping costse. total variable costs

Answers: 1

Answer

You know the right answer?

Lucido products markets two computer games: claimjumper and makeover. a contribution format income...

Questions