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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
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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