Mega Electronix sells television sets and DVD players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below.
TV Division DVD Division Total
Sales $600,000 $400,000 $1,000,000
Variable costs
450,000
240,000
690,000
Contribution margin
$150,000
$160,000
310,000
Fixed costs
124,000
Net income
$186,000
Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 2 decimal places, e.g. .50.)
Sales Mix Percentage
TV Division
DVD Division
Contribution margin ratio
TV Division
DVD Division
Calculate the company's weighted-average contribution margin ratio. (Round answer to 2 decimal places, e.g. .50.)
Calculate the company's break-even point in dollars. (Use the rounded amount from the previous question when calculating the answer for this question.)
Determine the sales level in dollars for each division at the break-even point.
- TV Division $
- DVD Division $