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Pina Colada Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for
Pina Colada Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Computers VG Systems Total Sales $714,000 $306,000 $1,020,000 Variable costs 428,400 214,200 642,600 Contribution margin $285,600 $91,800 377,400 Fixed costs 201,650 Net income $175,750 Determine the sales mix and contribution margin ratio for each division. Computers VG Systems Sales mix % % Contribution margin ratio % % Calculate the company's weighted average contribution margin ratio. Weighted average contribution margin ratio % Calculate the company's break-even point in sales dollars. Break-even point $ Determine the sales level, in dollars, for each division at the break-even point. Computers VG Systems Break-even point $ $
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