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E6-10 Personal Electronix sells iPads and iPods. The business is divided into two divi- sions along product lines. CVP income statements for a recent quarter's
E6-10 Personal Electronix sells iPads and iPods. The business is divided into two divi- sions along product lines. CVP income statements for a recent quarter's activity are pre- sented below. iPad Division iPod Division Total Sales $400,000 $1,000,000 Variable costs 260,000 680,000 Contribution margin $180,000 $140,000 320,000 Fixed costs 120,000 LEGO Net income $ 200,000 TOS$600,000 420,000 Instructions Dogana og laot be (a) Determine 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. Determine the sales level in dollars for each division at the break-even point
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