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 | $793,800 | $466,200 | $1,260,000 | |||
| Variable costs | 563,598 | 256,410 | 820,008 | |||
| Contribution margin | $230,202 | $209,790 | 439,992 | |||
| Fixed costs | 143,172 | |||||
| Net income | $296,820 |
(a)
Determine sales mix percentage and contribution margin ratio for each division.
| Sales Mix Percentage | ||
|---|---|---|
| Tablet division | 63 % | |
| MP3 Player division | 37 % |
| Contribution Margin Ratio | ||
|---|---|---|
| Tablet division | 29% | |
| MP3 Player division | 45% |
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 rounded to 2 decimal places % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
1st Canadian Edition
978-0132490252, 132490250, 978-0176223311
