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Monty Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for

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Monty 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 $784,000 $196,000 $980,000 Variable costs 392,000 117,600 509,600 Contribution margin $392,000 $78,400 470,400 Fixed costs 190,080 Net income $280,320 Determine the sales mix and contribution margin ratio for each division. Sales mix Contribution margin ratio Computers 80 % 50 % VG Systems 20 % 40 %

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