Determine the sales level in dollars for computers division

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Question - Mad City Flash 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 Systems

Total

Sales

$800,000

$200,000

$1,000,000

Variable costs

480,000

140,000

620,000

Contribution margin

$320,000

$60,000

380,000

Fixed costs

 

 

228,000

Net income

 

 

$152,000

Required - Determine the sales level, in dollars, for Computers division at the break-even point.

Reference no: EM133129159

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