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Q1) Lucido Products markets two computer games: Claimjumper and Makeover. Contribution format income statement for recent month for two 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


1. find out overall contribution margin (CM) ratio for company.

2. find out overall break-even point for company in sales dollars.

3. Verify overall break-even point for company by creating contribution format income statement illustrating the suitable levels of sales for the two products.

4. Jamil Company, that has only one product, has given the following data concerning its most recent month of operations:

Selling price
Units in beginning inventory
Units produced
Units sold
Units in ending inventory
Variable cost per unit:
Direct Materials
Direct Labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative

Company manufactures same number of units every month, though sales in units vary from month to month.
Company variable costs per unit and total fixed costs have been constant from month to month.


(a) Determine unit product cost for month under variable costing?

(b) Determine the unit product cost for month under absorption costing?

(c) Determine th net operating income for month under variable costing?

(d) Compute net operating income for month under absorption costing?

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