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Question #3 Galaxy Electronics, Inc. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income
Question #3 Galaxy Electronics, Inc. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current 2020 year are presented below: Sales Computers $700,000 VG Systems $300,000 Total $1,000,000 Variable costs 420,000 210,000 630,000 Contribution margin $280,000 $ 90,000 370,000 Fixed costs 296,000 Net income $ 74,000 Required: (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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