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Blue Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the
Blue Chance Co. 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: Total Sales Variable costs Contribution margin280.000 Fixed costs Net income Computers $700,000 420,000 VG Systems $300,000 210,000 S90.000 $1,000,000 630,000 370,000 296,000 S 74,000 Instructions (a) Determine the sales mix in terms of percentages of sales dollars for each division. (1 point) (b) Determine the contribution margin ratio for each division. (1 point) (c) Calculate the company's weighted-average contribution margin ratio. ( point) (d) Calculate the company's break-even point in dollars. (1 point) (e) Determine the sales level, in dollars, for each division at the break-even point. (1 point)
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