Verify the overall break-even point for the 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
|
$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
|
Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.