Solution-Determine sales mix percentage and contribution

Determine sales mix percentage and contribution margin ratio

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Reference no: EM13889186

Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below.

	iPad Division	iPod Division	Total
Sales	$600,000	$400,000	$1,000,000
Variable costs	420,000	260,000	680,000
Contribution margin	$180,000	$140,000	320,000
Fixed costs			120,000
Net income			$ 200,000

Instructions

(a) Determine sales mix percentage and contribution margin ratio for each division.

(b) Calculate the company's weighted-average contribution margin ratio.

(d) Determine the sales level in dollars for each division at the break-even point.

Reference no: EM13889186

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Determine sales mix percentage and contribution margin ratio

Reference no: EM13889186

Reference no: EM13889186

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