Blue Chance Co. sells computers and video game systems. The business is divided into two divisons along product lines. Variable costing income statements for the current year are presented below:

Computer VG Systems Total

Sales $700,000 $300,000 $1,000,000

Variable Costs 420,000 210,000 630,000

Contribution Margin $280,000 $90,000 370,000

Fixed Costs 296,000

Net Income $74,000

Instruction:

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 dollar, for each division at the break-even point.