Question: E6.10 (LO 2), AP Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income

E6.10 (LO 2), AP Personal Electronix sells computer tablets and MP3 players.

E6.10 (LO 2), AP 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. Tablet Division Sales $600,000 Variable costs 420,000 Contribution margin $180,000 Fixed costs Net income MP3 Player Division $400,000 Total $1,000,000 260,000 680,000 $140,000 320,000 120,000 $ 200,000 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. Compute contribution margin and determine the product to be manufactured.

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