Lucido Products markets two computer games: Claimjumper and Makeover. A contribution margin income statement for a recent

Question:

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution margin income statement for a recent month for the two games appears as follows:

Required:

1. Compute the overall 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 an income statement showing the appropriate levels of sales for the two products.

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Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

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Question Posted: Oct 25, 2019 11:31 AM

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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution margin income statement for a recent

Question:

Claimjumper Makeover Total $65,000 Sales $150,000 $85,000 Less: Variable expenses 45,000 60,000 105.000 Contribution margin 45,000 $20,000 $25,000 Less: Fixed expenses 36.000 Net income $ 9,000

Step by Step Answer:

1 The overall contribution margin ratio can be computed as follows 2 The overall ...View the full answer

Introduction to Managerial Accounting

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