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Sandhill sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for
Sandhill sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a recent quarter's activity is presented below: TV Division Blu-ray DVD Player Division Total Sales $1,016,400 $193,600 $1,210,000 Variable costs 691,152 154,880 846,032 Contribution margin $325,248 $38,720 363,968 Fixed costs 181,984 Operating income $181,984 Determine the percentage of sales and the contribution margin for each division. Percentage of sales Contribution margin TV Division % % DVD Division eTextbook and Media % % Calculate the company's weighted-average contribution margin ratio. (Round answer to 2 decimal places, e.g. 15.25%.) Weighted-average contribution margin ratio % Calculate the company's break-even point in dollars. Break-even point $ eTextbook and Media Determine the sales level in dollars for each division at the break-even point. Sales level TV Division $ DVD Division $ eTextbook and Media
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