Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed

Determine sales mix percentage and contribution margin ratio for each division.

Calculate the companys weighted-average contribution margin ratio. (Round computations and final answer to 2 decimal places, e.g. 15.26%.)

Calculate the companys break-even point in dollars. (Round computations to 2 decimal places and final answer to 0 decimal places, e.g. 1,526.)

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.)

Tablet Division Total MP3 Player Division $465,500 274,645 Sales $864,500 613,795 $1,330,000 888,440 Variable costs $250,705 $190,855 441,560 Contribution margin Fixed costs Net income 134,460 $307,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

7th Edition

1259066487, 978-1259066481

Students also viewed these Accounting questions