Q1) Lucido Products markets two computer games: Claimjumper and Makeover. Contribution format income statement for recent month for 2 games given below:
| |
Claimjumper |
Makeover |
Total |
| Sales |
$30,000 |
$70,000 |
$100,000 |
| Less variable expanses |
20,000 |
50,000 |
70,000 |
| Contribution margin |
$10,000 |
$20,000 |
30,000 |
| Less fixed expenses |
|
|
24,000 |
| Net operating income |
|
|
$6,000 |
Give reason that overall break-even point for company by creating contribution format income statement illustrating suitable levels of sales for two products.