Long Beach Solar Systems, Inc. sells solar water heating and solar power systems. The business is...
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Long Beach Solar Systems, Inc. sells solar water heating and solar power systems. The business is divided into two divisions along product lines. Variable costing income statements for the current 2021 year are presented below: Water Heat Power Systems Total $1,000,000 495,000 505,000 410,000 $ 95.000 Sales $250,000 $750,000 Variable costs 165,000 330,000 Contribution margin $85,000 $ 420,000 Fixed costs Net income Required: (a) Determine the sales mix and contribution margin ratio for each division. (b) Calculate the company's weighted-average contribution margin ratio. (c) Calculate the company's breakeven point in dollars. (d) Determine the sales level, in dollars, for each division at the breakeven point. Long Beach Solar Systems, Inc. sells solar water heating and solar power systems. The business is divided into two divisions along product lines. Variable costing income statements for the current 2021 year are presented below: Water Heat Power Systems Total $1,000,000 495,000 505,000 410,000 $ 95.000 Sales $250,000 $750,000 Variable costs 165,000 330,000 Contribution margin $85,000 $ 420,000 Fixed costs Net income Required: (a) Determine the sales mix and contribution margin ratio for each division. (b) Calculate the company's weighted-average contribution margin ratio. (c) Calculate the company's breakeven point in dollars. (d) Determine the sales level, in dollars, for each division at the breakeven point.
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a Sales Mix and Contribution Margin Ratio for Each Division Sales Mix for Water Heating Division Sal... View the full answer
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
Posted Date:
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