Question

Exercise 6-10 Multiproduct Break-Even Analysis (LO6-9) Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $118.000 36,400 $ 81,600 Makeover $ 59,000 7.850 $ 51,150 Total $177,000 44,250 132,750 87, 750 $ 45,000 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.

I've answered part 1 & 2 just need help with part 3

Answer 1

Lucido Products Contribution Income statement Claimjumper M akeover $ 78,000 $ 39,000 24,061 5,189 $ 53,939 $ 33,811 Total $ Sales Variable expense Contribution margin Fixed expenses Net operating income (loss) 117,000 29,250 7,750 87,750 8 $ Working Notes Overall Contribution Margin 132,750 / 177,000 75.00% 87,750 / 75% $ 117,000 Overall Break even sales Allocation of break even sales Sales Amount Claimjumper Makeover Total 118,000 59,000 177,000 % of Total sales Breakeven sale Allocated Sales [B=(A / $177,000)] (C) (BⓇC). 66.67% $ 117,000 $ 78,000 33.33% $ 117,000 $ 39,000 117,000 Calculation of Variable expense (B) (c) Sales Amount (A) 118,000 59,000 177,000 Claimjumper Makeover Total Allocated Revised Variable Variable Expense Breakeven sales expense (C ⓇB/A) 36,400 $ 78,000 $ 24,061 7,850 $ 39,000 $ 5,189 44,250 $ 117,000 $ 29,250