Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Cullumber Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarters

Cullumber Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarters activity are presented below.

Tablet Division

MP3 Player Division

Total

Sales

$ 835,700 $ 534,300 $ 1,370,000

Variable costs

618,418 304,551 922,969

Contribution margin

$ 217,282 $ 229,749 447,031

Fixed costs

133,783

Net income

$ 313,248

Determine the sales mix percentage based on sales dollars and contribution margin ratio for each division.

Sales Mix Percentage

Tablet division

enter percentages %

MP3 Player division

enter percentages %

Contribution Margin Ratio

Tablet division

enter percentages %

MP3 Player division

enter percentages %

eTextbook and Media

Calculate the companys weighted-average contribution margin ratio. (Do not round intermediate calculations; report final answer as a percentage rounded to 2 decimal places, e.g. 15.26%.)

Weighted-average contribution margin ratio

enter the weighted-average contribution margin ratio in percentages rounded to 2 decimal places %

eTextbook and Media

Calculate the companys break-even point in sales dollars. (Do not round intermediate calculations; round final answer to 0 decimal places, e.g. 1,526.)

Break-even point

$ enter the break-even point in dollars rounded to 0 decimal places

eTextbook and Media

Determine the sales level in dollars for each division at the break-even point. (Do not round intermediate calculations; round final answer to 0 decimal points, e.g. 1,526.)

Break-even point

Tablet division

$ enter a dollar amount

MP3 Player division

$ enter a dollar amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial And Managerial Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

8th Edition

9780137858651

Students also viewed these Accounting questions