Answer:
See explanations below
Explanation:
1. Overall contribution margin ratio of the company
= (Total contribution margin / Total sales ) × 100
= ( $113,400 / $162,000 ) × 100
= 70%
2 Company's overall break even point in dollar sales.
= Fixed expenses / Contribution margin ratio
= $82,530 / 70%
= $117,900
3. Contribution format income statement
Claim jumper
Sales $108,000/$162,000 = $0.67 × 100
= 67% × $117,900
= $78,993
Makeover
Sales $54,000/$162,000 = $0.33 × 100
= 33% × $117,900
= $38,907
Claim jumper
Variable expenses
= ($68,120 / $108,000) × $39,880
= $25,154
Makeover
Variable expenses
= ($45,280 / $54,000) × $8,720
= $7,312
• Variable expenses at the point of break even sales = (Break even sales / Original sales ) × Variable expense
