Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Planning And Budgeting For The Agile Enterprise A Driver-based Budgeting Toolkit

Authors: Barrett, Richard

1st Edition

0750683279, 9780750683272

More Books

Students also viewed these Accounting questions

Question

1. List the basic factors determining pay rates.pg 87

Answered: 1 week ago