acc349 mega electronix sells television sets and dvd players the business is divided 492712
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.
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acc349 mega electronix sells television sets and dvd players the business is divided 492712
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|
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 |
Instructions
(a) Determine sales mix percentage and contribution margin ratio for each division.
(b) Calculate the company’s weighted-average contribution margin ratio.
(c) Calculate the company’s break-even point in dollars.
(d) Determine the sales level in dollars for each division at the break-even point.
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