Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
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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 $ 116, 000 42,760 $ 73,240 Makeover %$ 58,000 9,440 $ 48,560 Total $ 174,000 52, 200 Sales Variable expenses Contribution margin 121, 800 Fixed expenses 82,110 $ 39,690 Net operating income 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. 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 $ 116, 000 42,760 $ 73,240 Makeover %$ 58,000 9,440 $ 48,560 Total $ 174,000 52, 200 Sales Variable expenses Contribution margin 121, 800 Fixed expenses 82,110 $ 39,690 Net operating income 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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Answer rating: 100% (QA)
Required 1 Overall CM ratio 70 Explanation Overall Contribution margin CM ratio Total contribution m... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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