Hello,

I am having a hard time figuring out the Variable Expense in section 3 of this question:

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	$	110,000	$	55,000	$	165,000
Variable expenses		40,600		8,900		49,500
Contribution margin	$	69,400	$	46,100		115,500
Fixed expenses						82,110
Net operating income					$	33,390

Required:

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

70%

2. Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

117,300

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 answers to the nearest dollar amount.)

Sales 78,200 39,100 117,300

Variable Expense

Contribution Margin

Fixed Expenses 82,110

Net Operating Income 0