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

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.	Compute the overall contribution margin (CM) ratio for the company.

2.

Compute the overall break-even point for the company in dollar sales. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

 
3.

Complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

 
Thanks

You have been provided with the following information regarding the VLCD Manufacturing company

You have been provided with the following information regarding the VLCD Manufacturing company:

 

Answer

Question No. 1

Required No. a

Profit = (50-24-6) x 40,000 – 360,000-80,000 = 360,000

Required No. B

Break-even point in sales =[ 440,000/(20/50) ]= $1100,000

Required No. c

Margin of safety percentage = [(50 x 40,000)-$1100,000]/(50 x 40,000) = 0.45

Required No. d

Break-even point in Units = [(360,000+80,000)+(120,000/1-0.4)]/(50-24-6) = 32,000