Exercise 19-10

Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarters activity are presented below.

		iPad Division		iPod Division		Total
Sales		$780,000		$420,000		$1,200,000
Variable costs		546,000		235,200		781,200
Contribution margin		$234,000		$184,800		418,800
Fixed costs						142,392
Net income						$276,408

Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 0 decimal places, e.g. 15%.)

		Sales Mix Percentage
iPad division		%
iPod division		%

		Contribution Margin Ratio
iPad division		%
iPod division		%

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Calculate the companys weighted-average contribution margin ratio. (Round answer to 2 decimal places, e.g. 15.26%.)

Weighted-average contribution margin ratio

%

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Calculate the companys break-even point in dollars. (Round answer to 0 decimal places, e.g. 1,526.)

Break-even point

$

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Determine the sales level in dollars for each division at the break-even point. (Round answers to 0 decimal places, e.g. 1,526.)

		Break-even point
iPad division		$
iPod division		$