EXERCISE 3-4 Computing and Using the CM Ratio [LO3-31 Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total vari- able expenses were $120,000, and fixed expenses were $65,000 Required: What is the company's contribution margin (CM) ratio? Estimate the change in the company's net by $1,000 2. operating income if it were to increase its total sales EXERCISE 3-10 Compute the Break-Even Point for a Multiproduct Company [LO3-9 Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Total Makeover Claimjumper $100,000 Sales.. $70,000 $ 30,000 Variable expenses. 50,000 70,000 20,000 Contribution margin. Fixed expenses $10,000 $20,000 30,000 24,000 Net operating income. $ 6,000 Required: 1. Compute the overall contribution margin (CM) ratio for the company 2 Compute the overall break-even point for the company in dollar sales. 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. EXFRCISE 3