Lucido Products markets two computer games Claimjumper and .pdf

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The company markets two games, Claimjumper and Makeover. A contribution format income statement shows Claimjumper had $60,000 in sales and $40,000 in variable costs, while Makeover had $40,000 in sales and $20,000 in variable costs. The overall contribution margin ratio and break-even point in dollar sales need to be calculated to prepare a company contribution format income statement at the break-even point.

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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format
income statement for a recent month for the two games appears below: 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.

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