Question
Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's
Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below.
Tablet Division MP3 Player Division Total
Sales $838,400 $471,600 $1,310,000
Variable costs 620,416 259,380 879,796
Contribution margin $217,984 $212,220 430,204
Fixed costs 133,002
Net income $297,202
Determine sales mix percentage and contribution margin ratio for each division.
Sales Mix Percentage
Tablet division %
MP3 Player division %
Contribution Margin Ratio
Tablet division %
MP3 Player division %
Calculate the company's weighted-average contribution margin ratio.(Round computations and final answer to 2 decimal places, e.g. 15.26%.)
Weighted-average contribution margin ratio %
Calculate the company's break-even point in dollars.(Round computations to 2 decimal places and final answer to 0 decimal places, e.g. 1,526.)
Break-even point %
Determine the sales level in dollars for each division at the break-even point. (Round computations to 2 decimal places and final answers to 0 decimal places, e.g. 1,526.)
Break-even point
Tablet division $
MP3 Player division $
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