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Compute the overall contribution margin ratio for company

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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.)

Reference no: EM132386253

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