Blue Chance Co. sells computers and video game systems. The business is divided into two divisions...

 

Transcribed Image Text:

Blue Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Computers VG Systems Total Sales $700,000 $300,000 $1,000,000 Variable costs 420,000 210,000 630,000 Contribution margin $280,000 $ 90,000 370,000 Fixed costs 296,000 Net income $ 74,000 Instructions (a) Determine the sales mix in terms of percentages of sales dollars for each division. (1 point) (b) Determine the contribution margin ratio for each division. (1 point) (c) Calculate the company's weighted-average contribution margin ratio. (1 point) (d) Calculate the company's break-even point in dollars. (1 point) (e) Determine the sales level, in dollars, for each division at the break-even point. (1 point) Blue Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Computers VG Systems Total Sales $700,000 $300,000 $1,000,000 Variable costs 420,000 210,000 630,000 Contribution margin $280,000 $ 90,000 370,000 Fixed costs 296,000 Net income $ 74,000 Instructions (a) Determine the sales mix in terms of percentages of sales dollars for each division. (1 point) (b) Determine the contribution margin ratio for each division. (1 point) (c) Calculate the company's weighted-average contribution margin ratio. (1 point) (d) Calculate the company's break-even point in dollars. (1 point) (e) Determine the sales level, in dollars, for each division at the break-even point. (1 point)