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(suggested time 10 - 12 minutes, 9 marks) Chill Flash sells yoga and relaxation systems. The business is divided into two divisions. Variable costing income

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(suggested time 10 - 12 minutes, 9 marks) Chill Flash sells yoga and relaxation systems. The business is divided into two divisions. Variable costing income statements for the current year are presented below: Yoga Relax Systems Total Sales $600,000 $200,000 $800,000 Variable costs 480.000 140,000 620,000 Contribution margin $120.000 $ 60,000 180,000 Fixed costs 158.000 Net income $ 22.000 Determine the sales mix and contribution margin ratio for each service and then answer the following questions 1) The sales mix ratio for the yoga product is 96 2) The contribution ratio for relax systems is 96 3) Calculate the company's weighted average contribution margin ratio. % Assuming the weighted-average contribution margin ratio of 40% 4) Calculate the company's break-even point in dollars. $ 5) Determine the sales level, in dollars, for each service at the break-even point. The sales level for the yoga product is $ Assuming the weighted average contribution margin ratio of 40% 4) Calculate the company's break-even point in dollars. S 5) Determine the sales level, in dollars, for each service at the break-even point. The sales level for the yoga product is s 6) The company has a desired net income of $480,000. What amount of revenue would the company need to eam if they achieve this goal with the current sales mix? $

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