Personal Electronix sells iPads and iPods. The business is divided into two divi

Question

Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter’s activity are presented below.

Exercise 20-10 Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below iPad Division 841,800 597,678 $244,122 iPod Division Total Sales Variable costs Contribution margin Fixed costs Net income $538,200 $1,380,000 904,452 475,548 138,874 $336,674 306,774 $ 231,426 Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 0 decimal places, e.g. 15%.) Sales Mix Percentage iPad division iPod division Contribution Margin Ratio iPad division iPod division LINK TO TEXT VIDEO: SIMILAR EXERCISE

Explanation / Answer

Sales mix percentage Ipad division 61% =841800/1380000 Ipod division 39% =538200/1380000 Contribution margin ratio Ipad division 29% =244122/841800 Ipod division 43% =231426/538200 Weighted average contribution margin ratio=(61%*29%)+(39%*43%)= 34.46% Break even point=138874/34.46%= $403001 Break even point Ipad division 245831 =403001*61% Ipod division 157170 =403001*39%

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.