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Mad City Flash sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the

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Mad City Flash 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 $800,000 $200,000 $1,000,000 n Variable costs 480,000 140,000 620,000 Contribution margin $320,000 $ 60,000 380,000 Fixed costs 228,000 Net income $ 152,000 Instructions (show calculations): a Determine the sales mix, and contribution margin ratio for each division. 2.5 marks b) Calculate the company's weighted average contribution margin ratio. 2.5 marks c) Calculate the company's break-even point in dollars. 2.5 marks d) Determine the sales level, in dollars, for each division at the break-even point. 2.5 marks

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