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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: Sales Computers $700,000 VG Systems $300,000 Total $1,000,000 Variable costs Contribution margin 420,000 $280,000 210,000 630,000 $90,000 370,000 Fixed costs 296,000 Net income $74,000 Determine the sales mix and contribution margin ratio for each division. Sales mix Contribution margin ratio Computers VG Systems % Calculate the company's weighted average contribution margin ratio. Weighted-average contribution margin ratio Calculate the company's break-even point in dollars. Break-even point $ Determine the sales level, in dollars, for each division at the break-even point. Computers VG Systems Break-even point %
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