Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement fora recent month for the two games appears below: Claimjumper Makeover Total Sales $ 102,000 $51,000 $ 153,000Variable expenses 31,600 6,650 38, 250 Contribution margin $ 70,400 $ 44,350 114,750 Fixed expenses 87, 525 Netoperating income $27,225 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What isthe company's overall break - even point in dollar sales? 3. Prepare a contribution format income statement at thecompany's break - even point that shows the appropriate levels of sales for the two products.

ExplanationStep 1:Breakeven point of sales is the level of sales where total sales is equals to the…

Answered: Lucido Products markets two computer…

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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