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Accounting

City 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 $700,000 $300,000 $1,000,000
Variable costs 490,000 240,000 730,000
Contribution margin $210,000 $ 60,000 270,000
Fixed costs 135,000
Net income $135,000

Instructions:

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

(b) find out the company's weighted-average contribution margin ratio.

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

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M967353

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