All of the following are TRUE of a covered call writing strategy EXCEPT: (A) The strategy works best in a bull market. (B) The cost basis of the stock should be considered for tax purposes. (C) The call writer is expecting little change or a fall in the price of the underlying stock. (D) Repurchasing the calls in a closing transaction could lead to a loss.

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 $ 30,000 $ 70,000 $ 100,000 variable expenses 20,000 50,000 70,000 contribution margin $ 10,000 $ 20,000 30,000 fixed expenses 24,000 net operating income $ 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 dollar sales. 3. complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (do not round intermediate calculations.)