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E) Verity that the mix of sales units determined in d will generate a zero net income CHAPTER 6 Brandon Company sells iPads and iPods.
E) Verity that the mix of sales units determined in "d" will generate a zero net income CHAPTER 6 Brandon Company sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below: Total IPod Division $200,000 130,000 $70,000 iPad Division $300,000 210,000 $ 90,000 Sales Variable costs $ 500,000 340,000 160,000 60,000 5 100,000 Contribution Margin Fixed Cost Net Income Instructions a) Determine the sales mix percentage 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 dollars for each division at the break-even point. e) Verify that the mix of sales dollars in "d' will generate a zero net income
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