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 Sales Claimjumper $ 112,000 34,600 Makeover $ 56,000 7,400 Variable expenses $ 168,000 42,000 126,000 83,025 Contribution margin $ 77,400 $ 48,600 Fixed expenses Net operating income $ 42,975 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 Sales Claimjumper $ 112,000 34,600 Makeover $ 56,000 7,400 Variable expenses $ 168,000 42,000 126,000 83,025 Contribution margin $ 77,400 $ 48,600 Fixed expenses Net operating income $ 42,975 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 Contriubtion margin Total sales Overall Contribution margin Ratio Requireme... 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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