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Sarasota Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the
Sarasota 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 $864,000 $216,000 $1,080,000 Variable costs 432,000 129,600 561,600 Contribution margin $432,000 $86,400 518,400 Fixed costs 219,360 Net income $299,040 (a) Determine the sales mix and contribution margin ratio for each division. Sales mix Contribution margin ratio Computers % VG Systems % %
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