East Bay Electronics, Inc. sells Surround Stereo and Home Theater Systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Stereos HT Systems Total Sales $365,000 $735,000 $1,100,000 Variable costs 146,000 352,800 498,800 Contribution margin $219,000 $ 382,200 601,200 Fixed costs 396,200 Net income $ 205,000

Required:

(a) Determine the sales mix and contribution margin ratio for each division. (b) Calculate the companys weighted-average contribution margin ratio.

(c) Calculate the companys breakeven point in dollars.

(d) Determine the sales level, in dollars, for each division at the breakeven point.