Simeon, Inc. markets two computer games: Claimjumper and Makeover. A contribution format income statement for...
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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: Sales....... Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $30,000 20,000 $10,000 Makeover $70,000 50,000 $20,000 Total $100,000 70.000 30,000 24.000 $ 6,000 Required: 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
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