Question
Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are
Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below.
iPad Division iPod Division Total
Sales $728,000 $392,000 $1,120,000
Variable costs 524,160 215,600 739,760
Contribution margin $203,840 $176,400 380,240
Fixed costs 136,479
Net income $243,761
Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 0 decimal places, e.g. 15%.)
Sales Mix Percentage
iPad division--------------------
enter a percentage number rounded to 0 decimal places%
iPod division-----------------
enter a percentage number rounded to 0 decimal places%
Contribution Margin Ratio
iPad division------------------
enter a percentage number rounded to 0 decimal places%
iPod division--------------------
enter a percentage number rounded to 0 decimal places%
Part 2
Calculate the company's weighted-average contribution margin ratio. (Round computations and final answer to 2 decimal places, e.g. 15.26%.)
Weighted-average contribution margin ratio-----------------------------
enter a percentage number of the weighted-average contribution margin ratio rounded to 2 decimal places%
Part 3
Calculate the company's 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---------------------------------
$enter the break-even point in dollars rounded to 2 decimal places
Part 4
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
iPad division-----------------
$enter a dollar amount rounded to 2 decimal places
iPod division------------------
$enter a dollar amount rounded to 2 decimal places
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