Acc349 Cost Accounting: E6-10 Mega Electronix sells television sets and DVD players

Acc349 Cost Accounting

E6-10
Mega 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 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.
Powered by