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
$ 104,000
32,200
$ 71,800
Makeover
$ 52,000
6,800
$ 45,200
Total
$ 156,000
39,000
117ᎾᎾᎾ
84,825
$ 32,175
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.)
Lucido Products
Contribution Income Statement