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 quarters
Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarters activity are presented below.
| Tablet Division | MP3 Player Division | Total | ||||
|---|---|---|---|---|---|---|
| Sales | $ 819,000 | $ 441,000 | $ 1,260,000 | |||
| Variable costs | 606,060 | 251,370 | 857,430 | |||
| Contribution margin | $ 212,940 | $ 189,630 | 402,570 | |||
| Fixed costs | 129,078 | |||||
| Net income | $ 273,492 |
a)
Determine sales mix percentage and contribution margin ratio for each division.
| Sales Mix Percentage | ||
|---|---|---|
| Tablet division | enter a share of the division in percentages % | |
| MP3 Player division | enter a share of the division in percentages % |
| Contribution Margin Ratio | ||
|---|---|---|
| Tablet division | enter percentages % | |
| MP3 Player division | enter percentages % |
(b)
Calculate the companys weighted-average contribution margin ratio. (Round computations and final answer to 2 decimal places, e.g. 15.26%.)
| Weighted-average contribution margin ratio | enter the weighted-average contribution margin ratio in percentages % |
(c) calculate the break-even point in dollars
(d) calculate the break-even sales
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Financial & Managerial Accounting, 1, 2 Terms (12 Months)
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
133727075X, 9781337270755
