Question
Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarters activity are
Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarters activity are presented below.
iPad Division | iPod Division | Total | ||||
---|---|---|---|---|---|---|
Sales | $968,500 | $521,500 | $1,490,000 | |||
Variable costs | 687,635 | 286,825 | 974,460 | |||
Contribution margin | $280,865 | $234,675 | 515,540 | |||
Fixed costs | 142,206 | |||||
Net income | $373,334 |
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 % |
eTextbook and Media
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 a percentage number of the weighted-average contribution margin ratio rounded to 2 decimal places % |
eTextbook and Media
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 | $enter the break-even point in dollars rounded to 2 decimal places |
eTextbook and Media
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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