Exercise 5-10 Compute the Break-Even Point for a Multiproduct Company [LO5-9]

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

	Claimjumper		Makeover		Total
Sales	$	102,000	$	51,000	$	153,000
Variable expenses		31,600		6,650		38,250
Contribution margin	$	70,400	$	44,350		114,750
Fixed expenses						83,025
Net operating income					$	31,725

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. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

3.	Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)