Question
Sunland Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's
Sunland Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below.
Tablet Division | MP3 Player Division | Total | ||||
Sales | $819,000 | $441,000 | $1,260,000 | |||
Variable costs | 606,060 | 251,370 | 857,430 | |||
Contribution margin | $212,940 | $189,630 | 402,570 | |||
Fixed costs | 129,078 | |||||
Net income | $273,492 |
(a)
Determine the sales mix percentage based on sales dollars and contribution margin ratio for each division.
Sales Mix Percentage | ||
Tablet division | enter percentages % | |
MP3 Player division | enter percentages % |
Contribution Margin Ratio | ||
Tablet division | enter percentages % | |
MP3 Player division | enter percentages % |
(b) Calculate the company's weighted-average contribution margin ratio.
Weighted average contribution margin ratio %
(c) Calculate the company's break-even point in dollars
Break-even point $
(d) Determine the sales level in dollar for each division at eh break-even point
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