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Flint Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the
Flint Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Computers VG Systems Total Sales $944,000 $236,000 $1,180,000 Variable costs 472,000 141,600 613,600 Contribution margin $472,000 $94,400 566,400 Fixed costs 249,120 Net income $317,280 (a) Your answer is correct. Determine the sales mix and contribution margin ratio for each division. Sales mix Computers 80 80 % Contribution margin ratio 50 % VG Systems 20 20 % 40 % (b) (c) Your answer is correct. Calculate the company's weighted-average contribution margin ratio. Weighted-average contribution margin ratio eTextbook and Media Calculate the company's break-even point in sales dollars. Break-even point FA $ 48 %
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