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Homework answers / question archive / Lucido Products markets two computer games: Claimjumper and Makeover

Lucido Products markets two computer games: Claimjumper and Makeover

Accounting

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income sMtement for a recent 11 month for the two games appears below: 
samr 00o r 25,000 5 50,000 5,000 § 150,000 30,000 Varaabla expanses Contribution margan 75,000 § 95,000 120,000 91,200 Pipet expanses Not oprating $ 38,800 
Required: I. WM1. 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 staMment at the company, break-even point that shows the appropri.e levels of sales for the two products. 
 

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Existing Contribution format Income Statement:
Particulars Claimjumper   Makeover   Total
Sales 100,000 66.67% 50000 33.33% 150,000
Less: Variable Cost 25000 25.00% 5000 10.00% 30,000
Contribution 75,000   45000   120,000
Fixed Expenses         91200
Net Operating Income         28,800

1) Overall Contribution Margin Ratio = Total Contribution Margin/Total Sales

= $120,000/$150,000

= 80%

 

2) Overall Breakeven Point = Fixed Expenses/Contribution Margin Ratio 

= $91,200/80%

= $114,000

 

3) 

Break even Contribution format Income Statement
Particulars Claimjumper   Makeover   Total
Sales 76000 66.67% 38000 33.33% 114000
Less: Variable Cost 19000.00095 25.00% 3799.9962 10.00% 22800
Contribution 57000   34200   91200
Fixed Expenes         91200
Net Operating Income         0

 

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