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 $ 106,000 $ 53,000 $ 159,000
Variable expenses 32,800 6,950 39,750
Contribution margin $ 73,200 $ 46,050 119,250
Fixed expenses 85,050
Net operating income $ 34,200


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.