Personal Electronix sells computer tablets and MP3 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 the sales mix percentage based on sales revenue 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 sales dollars.

d. Determine the sales level in dollars for each division at the break-even point.

Transcribed Image Text:

Sales Variable costs Contribution margin Fixed costs Net income Tablet Division $600,000 420,000 $180,000 MP3 Player Division $400,000 260,000 $140,000 Total $1,000,000 680,000 320,000 120,000 $ 200,000