Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Riverbed Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the

Riverbed 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 $636,000 $424,000 $1,060,000 Variable costs 445,200 339,200 784,400 Contribution margin $190,800 $84,800 275,600 Fixed costs 213,720 Net income $61,880 (a) Your answer is correct. Determine the sales mix and contribution margin ratio for each division. Sales mix Contribution margin ratio Computers VG Systems 60 % 30 % 40 % 20 % (b) (c) * Your answer is incorrect. Calculate the company's weighted-average contribution margin ratio. Weighted-average contribution margin ratio eTextbook and Media Your answer is correct. Calculate the company's break-even point in sales dollars. Break-even point GA $ 822,000 75 % Attempts: 3 of 3 used (d) Determine the sales level, in dollars, for each division at the break-even point. Break-even point Computers $ VG Systems

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

More Books

Students also viewed these Accounting questions