Reference no: EM132386253
Question
Compute the Break-Even Point for a Multiproduct Company
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 $ 94,000 $ 47,000 $ 141,000
Variable expenses 29,200 6,050 35,250
Contribution margin $ 64,800 $ 40,950 105,750
Fixed expenses 86,400
Net operating income $ 19,350
Required:
1. Compute the overall contribution margin (CM) ratio for the company.
2. Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
3. Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)