Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears on the following page:

Required:

1. Compute the overall contribution margin (CM) ratio for the company.

2. Compute the overall break-even point for the company in sales dollars.

3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.

Claimjumper Makeover Total Sales $70,000 $30,000 $100,000 70,000 Variable expenses Contribution margin Fixed expenses Net operating income 20,000 50,000 30,000 $10,000 $20,000 24,000 $ 6,000