Mega Electronix sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a recent quarter's activity is presented below:

Instructions
(a) Determine the percentage of sales and contribution margin 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 Division $800,000 560,000 $240,000 Blu-ray DVD Player Division $200,000 160,000 40,000 Total Sales Variable costs Contribution margin Fixed costs Operating income $1,000,000 720,000 280,000 140,000 $ 140,000