ll, Accounting, 6e HelR IS Personal Electronix sells iPads and iPods. The busine

Question

ll, Accounting, 6e HelR IS 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. iPad Division iPod Divisiorn Total Sales Variable costs Contribution margin Fixed costs Net income $755,200 543,744 $211,456 $424,800$1,180,000 246,384 790,128 $178,416 389,872 133,151 $256,72 Your answer is correct. Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 0 decimal places, e.g. 15%.) Sales Mix Percentage 64 iPad division 36 iPod division Contribution Margin Ratio 20

Explanation / Answer

(d) Calculation of sales level in dollars for each division at the break-even point.

iPad Division              = Break-Even Point x Sales Mix Percentage

                                    = $ 4,02,999 x 64 %

                                    = $ 2,57,919

iPod Division              = Break-Even Point x Sales Mix Percentage

                                    = $ 4,02,999 x 36 %

                                    = $ 1,45,080

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