Swifty Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines
Posted: Fri Jul 01, 2022 8:44 am
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