Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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)

Your answer has been saved. See score details after the due date.

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

%image text in transcribedimage text in transcribed

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 $376,000 $75,200 451,200 Contribution margin Fixed costs 178,080 Net income $273,120 (a) Your answer has been saved. See score details after the due date. Determine the sales mix and contribution margin ratio for each division. Computers VG Systems Sales mix 80 % 20 % de Contribution margin ratio 50 % 40 % Attempts: 1 of 1 used (b) Calculate the company's weighted-average contribution margin ratio. Weighted-average contribution margin ratio % Save for Later Attempts: 0 of 1 used Submit Answer X Meme (b) Your answer has been saved. See score details after the due date. Calculate the company's weighted average contribution margin ratio. Weighted average contribution margin ratio 48 % Attempts: 1 of 1 used (c) Your answer has been saved. See score details after the due date. Calculate the company's break-even point in sales dollars. Break-even point $ 334000 Attempts: 1 of 1 used (d) Your answer has been saved. See score details after the due date. Determine the sales level, in dollars, for each division at the break-even point. Computers VG Systems Break-even point $ 267200 $ 66800 Attempts: 1 of 1 used OOO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for business decision making

Authors: kimmel, weygandt, kieso

4th Edition

978-0470095461

More Books

Students also viewed these Accounting questions