Swifty Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines
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Swifty Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines
Swifty Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Sales Variable costs Contribution margin Fixed costs Net income Computers $854,000 512,400 $341,600 Sales mix Contribution margin ratio VG Systems $366,000 256,200 $109,800 Determine the sales mix and contribution margin ratio for each division. Computers Weighted-average contribution margin ratio Break-even point $ Total Break-even point $ $1,220,000 768,600 451,400 260,850 $190,550 Calculate the company's weighted-average contribution margin ratio. 70 % 40 % Calculate the company's break-even point in sales dollars. Computers. VG Systems $ % Determine the sales level, in dollars, for each division at the break-even point. 30 % 30 % VG Systems