1.
Overall Contribution margin ratio = Overall Contribution margin/Total sales
= 132,750/177,000
= 75%
2.
Overall Break even point ($) = Fixed cost/Overall Contribution margin ratio
= 87,975/75%
= $117,300
3.
Sales ratio = 118,000:59,000
= 2:1
Contribution margin ratio = Contribution margin/Sales
Contribution margin ratio of Claimjumper = 81,600/118,000
= 69.15254237%
Contribution margin ratio of Makeover = 51,150/59,000
= 86.69491525%
Contribution format income statement
Claimjumper | Makeover | Total | |
Sales | 117,300 x 2/3 = 78,200 | 117,300 x 1/3 = 39,100 | 117,300 |
Variable cost | - 24,123 | - 5,202 | - 29,325 |
Contribution margin | 54,077 | 33,898 | 87,975 |
Fixed cost | - 87,975 | ||
Net operating income | 0 |
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