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Long Beach Solar Systems, Inc. sells solar water heating and solar power systems. The business is divided into two divisions along product lines. Variable
Long Beach Solar Systems, Inc. sells solar water heating and solar power systems. The business is divided into two divisions along product lines. Variable costing income statements for the current 2021 year are presented below: Water Heat Power Systems Total $1,000,000 495,000 505,000 410,000 $ 95.000 Sales $250,000 $750,000 Variable costs 165,000 330,000 Contribution margin $85,000 $ 420,000 Fixed costs Net income Required: (a) Determine the sales mix and contribution margin ratio for each division. (b) Calculate the company's weighted-average contribution margin ratio. (c) Calculate the company's breakeven point in dollars. (d) Determine the sales level, in dollars, for each division at the breakeven point.
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