Exercise 1910 Personal Electronix sells iPads and iPods The

Exercise 19-10 Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter\'s activity are presented below. iPod Division Total Sales Variable costs Contribution margin Fixed costs Net income iPad Division $710,400 504,384 $206,016 $399,600 $1,110,000 724,164 385,836 142,864 $242,972 219,780 $179,820 Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 0 decimal places, e.g. 15%.) Sales Mix Percentage iPad division iPod division Contribution Margin Ratio iPad division iPod division LINK TO TEXT VIDEO: SIMILAR EXERCISE Calculate the company\'s weighted-average contribution margin ratio. (Round computations and final answer to 2 decimal places, e.g. 15.2696.) Weighted-average contribution margin ratio

Solution

1 Sales mix iPad division 64% =710400/1110000 iPod division 36% =399600/1110000 2 Contribution margin ratio iPad division 29% =206016/710400 iPod division 45% =179820/399600 3 Weighted average contribution margin ratio=(64%*29%)+(36%*45%)= 34.76% 4 Break even point=142864/34.76%= $411001 5 Break even point iPad division 263041 =411001*64% iPod division 147960 =411001*36%