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Use the following information for the questions below. Maddy Ltd. sells computers and video game systems. The business is divided into two divisions along product
Use the following information for the questions below. Maddy Ltd. sells computers and video game systems. The business is divided into two divisions along product lines. CVP income statements for the current year are presented below: Computers VG System Total $700,000 $300,000 $1,000,000 Sales Variable Cost $455,000 150,000 605,000 Contribution 245,000 150,000 395,000 Margin 237,000 Fixed cost $158,000 Net Income Instructions: a) Determine the sales mix, and contribution margin ratio for each division. & also write the corresponding formulas. b) Calculate the company's weighted-average contribution margin ratio. & also write the corresponding formulas c) Calculate the company's break-even point in dollars. & also write the corresponding formulas. d) Determine the sales level, in dollars, for each division at the break-even point. & also write the corresponding formulas
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