E19-10 Lake Electronix sells television sets and DVD players. The business is divided binto 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 |
Instructions
(a) Determine sales mix percentage 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 dollars.
(d) Determine the sales level in dollars for each division at the break-even point.