Determine the break-even point in dollars for two divisions. E6.36 (LO 1, 2, 5) Mega Electronix sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a recent quarter's activity is presented below: Sales Variable costs Contribution margin Fixed costs Operating income TV Division $800,000 560,000 $240,000 Instructions a. Determine the percentage of sales and the contribution margin for each division. b. Calculate the company's weighted-average contribution margin ratio. c. Calculate the company's break-even point in dollars. Blu-ray DVD Player Division $200,000 160,000 $ 40,000 Total $1,000,000 720,000 280,000 140,000 $ 140,000
Determine the break-even point in dollars for two divisions. E6.36 (LO 1, 2, 5) Mega Electronix sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a recent quarter's activity is presented below: Sales Variable costs Contribution margin Fixed costs Operating income TV Division $800,000 560,000 $240,000 Instructions a. Determine the percentage of sales and the contribution margin for each division. b. Calculate the company's weighted-average contribution margin ratio. c. Calculate the company's break-even point in dollars. Blu-ray DVD Player Division $200,000 160,000 $ 40,000 Total $1,000,000 720,000 280,000 140,000 $ 140,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer the 4 questions. These are just easy questions. Skip if you would only answer the three. Thank you
Transcribed Image Text:Determine the break-even point in dollars for two divisions.
E6.36 (LO 1, 2, 5) Mega Electronix sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a
recent quarter's activity is presented below:
Sales
Variable costs
Contribution margin
Fixed costs
Operating income
TV
Division
$800,000
560,000
$240,000
Instructions
a. Determine the percentage of sales and the contribution margin 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.
Blu-ray DVD
Player Division
$200,000
160,000
$ 40,000
Total
$1,000,000
720,000
280,000
140,000
$ 140,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education