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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: Instructions Sales Variable costs Contribution margin Fixed costs Operating income TV Division $800,000 560,000 $240,000 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

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: Instructions Sales Variable costs Contribution margin Fixed costs Operating income TV Division $800,000 560,000 $240,000 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer all subparts because last part is interlinked with above parts thank you

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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