E6-10 Mega Electronix sells television sets and DVD players. The business is divided into two divisions
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.
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