Question: Galaxy Electronics, Inc. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the

Galaxy Electronics, Inc. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current 2020 year are presented below:Computers VG Systems TotalSales $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

Required:

(a) Determine the sales mix and contribution margin ratio for each division.

(b) Calculate the companys weighted-average contribution margin ratio.

(c) Calculate the companys break-even point in dollars.

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!