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DENIUS [597]
3 years ago
12

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 $ 112,000 $ 56,000 $ 168,000 Variable expenses 34,600 7,400 42,000 Contribution margin $ 77,400 $ 48,600 126,000 Fixed expenses 86,850 Net operating income $ 39,150 Required: 1. What is the overall contribution margin (CM) ratio for the company
Business
1 answer:
andrey2020 [161]3 years ago
8 0
The overall contribution margin ratio can be computed as follows:

Overall CM ratio = Total contribution margin/Total sales

= $141,600/177000= 80%
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