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Problem - Mega Electronix sells television sets and DVD players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below.
TV Division DVD Division Total
Sales $600,000 $400,000 $1,000,000
Variable costs 450,000 240,000 690,000
Contribution margin $150,000 $160,000 310,000
Fixed costs 124,000
Net income $ 186,000
Calculate the company's weighted-average contribution margin ratio.
Prepare a trading statement showing gross profit for the year assuming a periodic inventory system is used.
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