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Question 3: Blue Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements

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Question 3: Blue 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: VG Systems Computers Division Division Total Sales $700,000 $300,000 Variable costs 420,000 210,000 Contribution margin 90,000 370,000 Fixed costs 296,000 Net income $ 74,000 $1,000,000 630,000 $280,000 $ Instructions (a) Determine the sales mix and contribution margin ratio for each division. (b) Calculate the company's weighted average contribution margin ratio. (c) Calculate the company's break-even point in dollars. (d) Determine the sales level, in dollars, for each division at the break-even point

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