Exercise - Compute the Break-Even Point for a Multiproduct Company
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
|
Makeover
|
Total
|
|
Sales
|
$104,000
|
$52,000
|
$156,000
|
|
Variable expenses
|
32,200
|
6,800
|
39,000
|
|
Contribution margin
|
$71,800
|
$45,200
|
117,000
|
|
|
|
|
82,275
|
|
Net operating income
|
|
|
$31,725
|
Required -
1. Complete the overall contribution margin (CM) ratio for all company.
2. Compute the overall break-even point for the company in dollar sales.
3. Complete the contribution format statement at break-even point for the company showing the appropriate level of sales for the two products.