Check my work Lucido Products markets two computer games: Claimjumper and Makeov
ID: 2334047 • Letter: C
Question
Check my work 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 42,040 71,960 Makeover $ 57,000 9,260 47,740 Total Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 171,000 51,300 119,700 82,530 $ 37,170 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 2Required 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. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Engberg Company Contribution Income Statement Claimjumper Makeover Total Sales ariable expenses Contribution margin ixed expenses Net operating income (loss)Explanation / Answer
1 Overall Contribution margin Ratio 70 % (119700/171000)*100 2 Breakeven point in sales dollar Fixed Expense/Contribution marin ratio 117900 3 Contribution Income Statement Claim Jumper Makeover Total Sales 78600 39300 117900 Variable expenses 23580 11790 35370 Contribution margin 55020 27510 82530 Fixed expenses 82530 Net operating Income (loss) 0