Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recentmonth for the two games appears below:SalesVariable expensesContribution marginFixed expensesNet operating incomeClaimjumper$ 100,00037,000$ 63,000Makeover$ 50,0008,000$ 42,000Total$ 150,00045,000105,00080,850$ 24,150Required: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 forthe two products.Required 1 Required 2 Required 3Complete this question by entering your answers in the tabs below.Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of salesfor the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Lucido Products markets two computer…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

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Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As an aid in planning, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of good sold $30 per unit sold Advertising expense $186,000 per quarter Sales commissions 8% of sales Shipping expense ? Administrative salaries $96,000 per quarter Insurance expense $10,600 per quarter Depreciation expense $66,000 per quarter Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters follow: Quarter Units Sold ShippingExpense Year 1: First 32,000 $ 176,000…
JKL Inc. markets two computer games: Game 101 and Game 102. A contribution format income statement for a recent month for the two games appears below: 101 102Sales P30,000 P70,000Variable expenses. 20,000 50,000 Required:a. Compute the overall contribution margin (CM) ratio for the company. b. Compute the overall break-even point for the company in sales dollars if fixed cost is P15,000. c. 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.
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 $ 104,000 $ 52,000 $ 156,000 Variable expenses 25,960 5,240 31,200 Contribution margin $ 78,040 $ 46,760 124,800 Fixed expenses 89,760 Net operating income $ 35,040 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. REQUIRED 1 Overall CM ratio % Required 2 Overall break-even point ....... Required 3 see doc attached.
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 $ 102,000 $ 51,000 $ 153,000 Variable expenses 25,480 5,120 30,600 Contribution margin $ 76,520 $ 45,880 122,400 Fixed expenses 88,080 Net operating income $ 34,320 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.
A merchandising company has provided the following contribution format incomestatement:Sales (10,000 units) $ 700,000Variable expenses 350,000Contribution margin 350,000Fixed expenses 85,000Net operating income $ 265,000(a) What is the total contribution margin? (b) What is the unit contribution margin? Show your calculations. **Pls help me in clear soultion with accurate answer pls thanks
PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even.
Ivanhoe Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarter’s operating profits, by product, and for the company as a whole, were as follows: Square Round Total Sales revenue $12,800 $6,670 $19,470 Variable expenses 4,980 2,930 7,910 Contribution margin 7,820 3,740 11,560 Fixed expenses 2,810 4,200 7,010 Operating income $ 5,010 $(460 ) $ 4,550 Forty percent of the Round Game’s fixed costs could have been avoided if the game had not been produced or sold.If the Round Game had been discontinued before the last quarter, what would operating income have been for the company as a whole? Operating income without round $ _______
Simeon, Inc. markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears on the following page: 1. Compute the overall contribution margin (CM) ratio for the company. 2. Compute the overall break-even point for the company in sales dollars. 3. 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.
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. 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.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: (See attached image for data and question formatting) ONLY NEED QUESTION 3! 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.
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. ( Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.)a. Assume that only one product is being sold in each of the four following case situations:Contribution Net OperatingUnits Variable Margin Fixed IncomeCase Sold Sales Expenses per Unit Expenses (Loss)1 .......... 15,000 $180,000 $120,000 ? $50,000 ?2 .......... ? $100,000 ? $10 $32,000 $8,0003 .......... 10,000 ? $70,000 $13 ? $12,0004 .......... 6,000 $300,000 ? ? $100,000 $(10,000)
Whirly Corporation’s most recent income statement is shown below:Total Per UnitSales (10,000 units) ..................... $350,000 $35.00Variable expenses ....................... 200,000 20.00Contribution margin ..................... 150,000 $15.00Fixed expenses ........................... 135,000Net operating income .................. $ 15,000Required:Prepare a new contribution format income statement under each of the following conditions (consider eachcase independently):1. The sales volume increases by 100 units.2. The sales volume decreases by 100 units.3. The sales volume is 9,000 units.

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