Indigo Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variablecosting income statements for the current year are presented below:ComputersVG SystemsTotalSales$720,000$480,000$1,200,000Variable costs504,000384,000888,000Contribution margin$216,000$96,000312,000Fixed costs255,060Net income$56,940(a)Determine the sales mix and contribution margin ratio for each division.Sales mixComputersVG Systems

The contribution margin is the difference between the sales and the variable cost. It thus…

Indigo Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Sales Computers $720,000 VG Systems Total $480,000 $1,200,000 Variable costs 504,000 384,000 888,000 Contribution margin $216,000 $96,000 312,000 Fixed costs 255,060 Net income $56,940 (a) Determine the sales mix and contribution margin ratio for each division. Sales mix Computers VG Systems

Indigo Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Sales Computers $720,000 VG Systems Total $480,000 $1,200,000 Variable costs 504,000 384,000 888,000 Contribution margin $216,000 $96,000 312,000 Fixed costs 255,060 Net income $56,940 (a) Determine the sales mix and contribution margin ratio for each division. Sales mix Computers VG Systems

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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