Question

Check my 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 $110,000 43,480 $ 74,520 Makeover $ 59,000 9.620 $ 49,380 Total $ 177,000 53,100 123,900 81,900 $ 42,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the overall contribution margin (CM) ratio for the company? Overall CM ratio % < Required Required 2 >

Answer 1

Requirement (1) Overall CM Ratio (123900/177000) 70.00% Requirement (2) Overall Break Even Point 81900/70% $ 117,000 Requirement (3) Lucido Products Contribution Income Statement Claim Jumper Makeover Total Sales Revenue $ 78,000 $39,000 $117,000 Variable Costs $ 28,741 $ 6,359 $ 35,100 Contribution Margin $ 49,259 $32,641 $ 81,900 Fixed Costs $ 81,900 Net Operating Income (loss) $ Note : Do comment for any further assistance