Question
Marigold Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the
Marigold 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 | $752,000 | $188,000 | $940,000 | ||||
Variable costs | 376,000 | 112,800 | 488,800 | ||||
Contribution margin | $376,000 | $75,200 | 451,200 | ||||
Fixed costs | 178,080 | ||||||
Net income | $273,120 |
(a)
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Determine the sales mix and contribution margin ratio for each division.
Computers | VG Systems | |||||
---|---|---|---|---|---|---|
Sales mix | enter percentages | % | enter percentages | % | ||
Contribution margin ratio | enter percentages | % | enter percentages | % |
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