FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 $ 102,000 $51,000 $ 153,000
Variable expenses 31,600 6,650 38, 250 Contribution margin $ 70,400 $ 44,350 114,750 Fixed expenses 87, 525 Net
operating income $27,225 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.
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Transcribed Image Text: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 31,600 6,650 38, 250 Contribution margin $ 70,400 $ 44,350 114,750 Fixed expenses 87, 525 Net operating income $27,225 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.
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