Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
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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: Total Claimjumper $ 102,000 Sales Makeover $ 51,000 8,180 $ 153,000 45,900 Variable expenses 37,720 Contribution margin $ 64,280 $ 42,820 107, 100 77,490 Fixed expenses Net operating income $ 29,610 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. 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 Claimjumper $ 102,000 Sales Makeover $ 51,000 8,180 $ 153,000 45,900 Variable expenses 37,720 Contribution margin $ 64,280 $ 42,820 107, 100 77,490 Fixed expenses Net operating income $ 29,610 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
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Answer rating: 100% (QA)
Requirement 1 Overall CM ratio Total Contribution margin Total Sales 114750 153000 075 or 75 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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