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.

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.

Transcribed Image Text:

TV DivisionDVD Division Total Sales Variable costs Contribution margin Fixed costs Net income $600,000 450,000 $400,000 240,000 $160,000 $1,000,000 690,000 310,000 124,000 $186,000 $150,000