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2 3 Mad City Flash sells computer and video game systems. The business is divided into two divisions along product lines. CVP income statements
2 3 Mad City Flash sells computer and video game systems. The business is divided into two divisions along product lines. CVP income statements for the current year are presented below. 4 5 Sales mix 6 Sales 7 Variable costs 8 Contribution margin 9 Fixed Costs 0 Operating Income 1 Computers Video Game Systems Total 27% 73% 555 300,000 $ 800,000 $ 1,100,000 $ 210,000 $ 480,000 $ 690,000 $ 90,000 $ 320,000 $ 410,000 $ 225,000 $ 185,000 2 Required: Calculate the following (3 marks): I a. Contribution margin ratio b. Weighted contribution margin ratio Computers Video Game Systems c. Total weighted average contribution margin ratio (1 mark) d. Break-even point in sales dollars for the company as a whole (1 mark)
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