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 | $ | 116,000 | $ | 58,000 | $ | 174,000 | |||
Variable expenses | 35,800 | 7,700 | 43,500 | ||||||
Contribution margin | $ | 80,200 | $ | 50,300 | 130,500 | ||||
Fixed expenses | 87,750 | ||||||||
Net operating income | $ | 42,750 | |||||||
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.
Requirement 1
Overall Contribution margin ratio | 75% |
Requirement 2
Overall Break-even point | $ 117,000.00 |
Requirement 3
Lucido Products | |||
Contribution income statement | |||
Claimjumper | Makeover | Total | |
Sales | $ 78,000 | $ 39,000 | $ 117,000 |
Variable expenses | $ 24,072 | $ 5,178 | $ 29,250 |
Contribution margin | $ 53,928 | $ 33,822 | $ 87,750 |
Fixed cost | $ 87,750 | ||
Net operating income (loss) | $ - |
Working
Total | |
Sales | $ 174,000.00 |
Variable expenses | $ 43,500.00 |
Contribution margin | $ 130,500.00 |
Contribution margin ratio (130500/174000) | 75% |
Fixed cost | $ 87,750.00 |
Overall Break-even point (87750/75%) | $ 117,000.00 |
.
Lucido Products | |||
Contribution income statement | |||
Claimjumper | Makeover | ||
Sales | =116000/174000*117000 | =58000/174000*117000 | |
Variable expenses | =35800/116000*78000 | =7700/58000*39000 |
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
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 $116,000 Makeover Total $ 58,000 7,700 $ 174,000 43,500 Sales Variable expenses 35,800 $ 80,200 $ 50,300 Contribution margin 130,500 Fixed expenses 86,850 $43,650 Net operating income 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...
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 $ 116,000 35,800 $ 80, 200 Makeover $ 58,000 7,700 $ 50,300 Total $ 174,000 43,500 130,500 88,200 $ 42,300 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....
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 $ 116,000 $ 58,000 $ 174,000 Variable expenses 28,840 5,960 34,800 Contribution margin $ 87,160 $ 52,040 139,200 Fixed expenses 88,560 Net operating income $ 50,640 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...
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 $ 116,000 28,840 $ 87,160 Makeover $ 58,000 5,960 $ 52,040 Total $ 174,000 34,800 139,200 89,520 $ 49,680 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...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claim jumper $116,000 42,760 S 73.240 Makeover $58.000 9.440 $ 48,560 Sales Variable expenses Contribution margin Fixed expenses Het operating income Total $ 174,000 52,200 121,800 77.910 $ 3.890 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...
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 $ 114,000 35,200 $ 78,800 Makeover $ 57,000 7,550 $ 49,450 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 171,000 42,750 128, 250 83,475 $ 44,775 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....
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 Claimjumper $ 116,000 42,760 Makeover $ 58,000 9,440 Total $ 174,000 52,200 Contribution margin Fixed expenses $ 73,240 $ 48,560 121,800 77,280 Net operating income $ 44,520 Required: 1. Compute the overall contribution margin (CM) ratio for the company. Overall CM ratio 70% 2. Compute the overall break-even point for the company in dollar sales. (Do not...
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 $ 118,000 $ 59,000 $ 177,000 Variable expenses 36,400 7,850 44,250 Contribution margin $ 81,600 $ 51,150 132,750 Fixed expenses 88,425 Net operating income $ 44,325 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...
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 $ 100,000 37,000 $ 63,000 Makeover $ 50,000 8,000 $ 42,000 Total $ 150,000 45,000 105,000 78,960 $ 26,040 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...
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 $165,000 41,250 123,750 Claimjumper Makeover Sales $110,000 $55,000 Variable 34,000 7,250 expenses Contribution $ 76,000 $47,750 margin Fixed expenses Net operating income 85,950 $ 37,800 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...