Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter’s activity are presented below.

iPad Division iPod Division Total Sales $600,000 $400,000 $1,000,000 Variable costs 420,000 260,000 680,000 Contribution margin $180,000 $140,000 320,000 Fixed costs 120,000 Net income $ 200,000 Instructions

(a) Determine sales mix percentage and contribution margin ratio for each division.

(b) Calculate the company’s weighted-average contribution margin ratio.

(c) Calculate the company’s break-even point in dollars.

(d) Determine the sales level in dollars for each division at the break-even point.

AppendixLO1