Blue Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below:
Instructions
(a) Determine the sales mix 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.

Question

Blue Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below:  
Instructions
(a) Determine the sales mix 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.

Quizplus · Accepted Answer

The Answer of Blue Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below:  
Instructions
(a) Determine the sales mix 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.