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Wildhorse sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for
Wildhorse 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 $870,100 $259,900 $1,130,000 Variable costs 591,668 202,722 794,390 Contribution margin $278,432 $57,178 335,610 Fixed costs 167,805 Operating income $167,805 Determine the percentage of sales and the contribution margin for each division. TV Division DVD Division Percentage of sales Contribution margin % % % % Calculate the company's weighted-average contribution margin ratio. (Round answer to 2 decimal places, e.g. 15.25%.) Weighted-average contribution margin ratio eTextbook and Media 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 $ %
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