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 Sales Variable expenses Contribution margin $ 30,000 20,000 Makeover $ 70,000 50,000 Total $ 100,000 70,000 $ 10,000 $ 20,000 30,000 24,000 $ 6,000 Fixed expenses Net operating income Required: 1. What is the company's overall contribution margin (CM) ratio? 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's overall contribution margin (CM) ratio? Overall CM ratio % 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 Sales Variable expenses Contribution margin $ 30,000 20,000 Makeover $ 70,000 50,000 Total $ 100,000 70,000 $ 10,000 $ 20,000 30,000 24,000 $ 6,000 Fixed expenses Net operating income Required: 1. What is the company's overall contribution margin (CM) ratio? 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's overall contribution margin (CM) ratio? Overall CM ratio %
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To calculate the companys overall contribution margin CM ratio we need to divide the total contribut... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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