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Flounder Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for
Flounder 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 Variable costs $540,000 $360,000 $900,000 378,000 288,000 666,000 Contribution margin $162,000 $72,000 234,000 Fixed costs Net income 166,140 $67,860 (a) Determine the sales mix and contribution margin ratio for each division. Sales mix Contribution margin ratio : Computers VG Systems %
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