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124 Tor Timele 2124 Mad City Flash sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing

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124 Tor Timele 2124 Mad City Flash sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing Income statements for the current year are presented below. Computers VG Systems Total Sales $800,000 $200.000 51.000.000 Variable costs 480.000 140.000 620.000 Contribution margin $320.000 $ 60 000 380.000 Fixed costs 220.000 Net Income $ 162.000 Instructions a) Determine the sales mix, 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. e Without doing the calculations, explain what might be the impact if the company sold a greater proportion of VG Systems? Break-even point in units - Fixed costs / Weighted average CM Sum of (Sales mix percent of each product type X Unit Contribution Margin) for all the products - Weighted Average Unt Contribution Margin

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