Handwritten is fine

A B E F H 1 J K L 2 Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP 3 income statements for a recent quarter's activity are presented below. 4 5 iPad iPod 6 Division Division Total 7 Sales $ 600,000 $ 400,000 $ 1,000,000 Variable costs 420.000 260.000 680,000 9 Contribution margin 180,000 140,000 320,000 10 Fixed costs 120,000 11 Net income 200,000 12 13 Instructions 14 (a Determine sales mix percentage and contribution margin ratio for each division. 15 (b) Calculate the company's weighted average contribution margin ratio. 16 (c) Calculate the company's break-even point in dollars. 17 (d) Determine the sales level in dollars for each division at the break-even point. 18 19 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 20 21 22 23 (a) Determine sales mix percentage and contribution margin ratio for each division. 24 (b) Calculate the company's weighted average contribution margin ratio. 25 26 iPad iPod 27 Division Total 28 Sales $ 600,000 $ 400,000 $ 1,000,000 29 Variable cost 420,000 260.000 680,000 Contribution margin 180,000 140,000 320,000 31 Contribution margin ratio value value value 32 33 Fixed costs 120,000 34 (120,000 Division Net income Percent of total sales Calculate the company's break-even point in dollars. Fixed costs Weighted average contribution ratio Break-even sales (Fxd Cost/CM ratio) $120,000 32% 37 38 39 (c) 40 41 42 43 44 45 46 (d) 47 48 49 50 51 52 53 54 Determine the sales level in dollars for each division at the break-even point. Sales Mix Percentage Total Break- even Sales in Dollars sales Dollars Needed Per Division iPad Division iPod Division Total Sales Value Value Value Value Value Value 7