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.

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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 Makeover Total Sales $106,000 $53,000 $159,000 Variable expenses 32,800 6,950 39,750 Contribution margin $73,200 $46,050 119,250 Fixed expenses 82,575 Net operating income $36,675 Requirement: 1: Compute the overall contribution margin (CM) ratio for the 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 $106,000 $53,000 $159,000 Variable expenses 32,800 6,950 39,750 Contribution margin $73,200 $46,050 119,250 Fixed expenses 82,575 Net operating income $36,675 Requirement: 1: Compute the overall contribution margin (CM) ratio for the company.

Answer rating: 100% (QA)

BreakEven Analysis for a MultiProduct Company Unfortunately I cannot compute the overall breakeven p... View the full answer