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 | $600,000 | $400,000 | $1,000,000 | |||
| Variable costs | 420,000 | 260,000 | 680,000 | |||
| Contribution margin | $180,000 | $140,000 | 320,000 | |||
| Fixed costs | 120,000 | |||||
| Net income | $200,000 |
Determine sales mix percentage and contribution margin ratio for each division.
| Sales Mix Percentage | ||
|---|---|---|
| Tablet division | Enter percentages % | |
| MP3 Player division | Enter percentages %
|
Tablet division Enter percentages %
MP3 Player division Enter percentages %
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 |
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.)
| 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 | $Enter a dollar amount | |
| MP3 Player division | $Enter a dollar amount |
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