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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 $30,000 $70,000 $100,000
Variable expenses 20,000 50,000 70,000
Contribution margin $10,000 $20,000 30,000
Fixed expenses 24,000
Net operating income $6,000
Required:
a. Compute the overall contribution margin (CM) ratio for the company.
b. Compute the overall break-even point for the company in sales dollars.
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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income s...
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