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 | $806,400 | $473,600 | $1,280,000 | |||
| Variable costs | 580,608 | 265,216 | 845,824 | |||
| Contribution margin | $225,792 | $208,384 | 434,176 | |||
| Fixed costs | 137,376 | |||||
| Net income | $296,800 |
(a)
Determine sales mix percentage and contribution margin ratio for each division.
| Sales Mix Percentage | ||
|---|---|---|
| Tablet division | Enter percentages % | |
| MP3 Player division | Enter percentages % |
| Contribution Margin Ratio | ||
|---|---|---|
| Tablet division | Enter percentages % | |
| MP3 Player division | Enter percentages % |
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
Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
538476230, 978-0538476232
