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 $ 104,000 $ 52,000 $ 156,000 Variable expenses 32,200 6,800 39,000 Contribution margin $ 71,800 $ 45,200 117,000 Fixed expenses 82,800 Net operating income $ 34,200

Answer 1

Sales Varaibles Expense contribution Margin Fixed Expense Net operating Margin Date ClaimJumpers Make over Totals 104000 52000 156000 32200 6800 39000 71800 45200 117000 82800 34200 1. Overall Contribution Margin of the Company = Total Contribution Margin / total Sales = 117000/156000 75% 2. Overall Break Even poin in dollar Sales = Fixed Cost / CM Ratio = 82800/75% 110400

Contribution Margin income Statement at the Companies Break Even point ClaimJumpers Make over Totals Sales 73600 36800 110400 Varaibles Expense 22788 4812 27600 contribution Margin 5081231988 82800 Fixed Expense 82800 Net operating Margin Sales MixRatio=Division Sales / Total sales Variable Cost ratio Sales = Total Sales* Sales mix Ratio Variable cost = sales *VC Ratio ClaimJumpers Make over 0.666666667 0.33333333 0.309615385 0.13076923 73600 36800 22787.69231 4812.30769