Determine the break-even point in dollars for two divisions. 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

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Determine the break-even point in dollars for two divisions.
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
Transcribed Image Text:Determine the break-even point in dollars for two divisions. 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
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