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 $ 100,000 $ 50,000 $ 150,000 Variable expenses 37,000 8,000 45,000 Contribution margin $ 63,000 $ 42,000 105,000 Fixed expenses 81,900 Net operating income $ 23,100
Required: 1. Compute the overall contribution margin (CM) ratio for the company.
2. Compute the overall break-even point for the company in dollar sales.
3. Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two product.