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.

		iPad Division		iPod Division		Total
Sales		$877,500		$472,500		$1,350,000
Variable costs		631,800		264,600		896,400
Contribution margin		$245,700		$207,900		453,600
Fixed costs						138,096
Net income						$315,504

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		enter a percentage number rounded to 0 decimal places %
iPod division		enter a percentage number rounded to 0 decimal places %

		Contribution Margin Ratio
iPad division		enter a percentage number rounded to 0 decimal places %
iPod division		enter a percentage number rounded to 0 decimal places %

eTextbook and Media

  

  

Calculate the company’s weighted-average contribution margin ratio. (Round computations and final answer to 2 decimal places, e.g. 15.26%.)

Weighted-average contribution margin ratio

enter a percentage number of the weighted-average contribution margin ratio rounded to 2 decimal places %

eTextbook and Media

  

  

Calculate the company’s break-even point in dollars. (Round computations to 2 decimal places and final answer to 0 decimal places, e.g. 1,526.)

Break-even point

$enter the break-even point in dollars rounded to 2 decimal places

eTextbook and Media

  

  

Determine the sales level in dollars for each division at the break-even point. (Round computations to 2 decimal places and final answers to 0 decimal places, e.g. 1,526.)

		Break-even point
iPad division		$enter a dollar amount rounded to 2 decimal places
iPod division		$enter a dollar amount rounded to 2 decimal places

Answer 1