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E52 A B fx C D 1 E20-10 Determine break-even point in dollars for two divisions 2 Personal Electronix sells iPads and iPods. The
E52 A B fx C D 1 E20-10 Determine break-even point in dollars for two divisions 2 Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP 3 income statements for a recent quarter's activity are presented below. 4 5 6 iPad Division 7 Sales 8 Variable costs $ 600,000 420,000 iPod Division $ 400,000 260,000 Total $ 1,000,000 680,000 9 Contribution margin 180,000 140,000 320,000 10 Fixed costs 120,000 11 Net income 200,000 12 13 Instructions 14 (a) 15 (b) 16 (c) 17 18 (d) Determine sales mix percentage and contribution margin ratio for each division. Calculate the company's weighted-average contribution margin ratio. Calculate the company's break-even point in dollars. Determine the sales level in dollars for each division at the break-even point. 19 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 20 21 22 23 (a) 24 (b) Determine sales mix percentage and contribution margin ratio for each division. Calculate the company's weighted-average contribution margin ratio. 25 26 27 28 Sales 29 30 31 Variable cost Contribution margin: Contribution margin ratio iPad Division $ 600,000 420,000 180,000 iPod Division $ 400,000 Total 1,000,000 260.000 680,000 140,000 320,000 32 120,000 33 Fixed costs HW Problem E20-10 Bonus Problem E20-13 + Ready CIRC 20 42
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