Question

In: Accounting

Personal Electronix sells iPad and iPhone. The business is divided into two divisions along with product...

Personal Electronix sells iPad and iPhone. The business is divided into two divisions along with product lines. CVP income statements for a recent quarter’s activity are presented below.

iPad

iPhone

Total

Sales Revenue

$600,000

$400,000

$1,000,000

Variable Cost

420,000

260,000

680,000

Contribution Margin

180,000

140,000

320,000

Fixed Cost

120,000

Net Income

200,000

Instructions:

a. Determine (1) sales mix percentage, (2) contribution margin ratio for each division.

b. Calculate the company’s weighted average contribution margin ratio.

c. Calculate the company’s breakeven in units and in dollar amount.

d. Determine the sales level in dollars for each division at the break even.

............................................................................................................................................

Question Four 5p

Ariba Corporation reaches its breakeven point at $3,200,000 of revenues. At present, it is selling 105,000 units and its variable costs are $30. Fixed manufacturing costs $800,000.

1. Compute the contribution margin percentage.              

2. Compute the selling price.                                             

3. Compute the margin of safety in units and dollars.     

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along...
Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter’s activity are presented below. Tablet Division MP3 Player Division Total Sales $851,200 $478,800 $1,330,000 Variable costs 612,864 282,492 895,356 Contribution margin $238,336 $196,308 434,644 Fixed costs 132,354 Net income $302,290. Determine sales mix percentage and contribution margin ratio for each division. Calculate the company’s weighted-average contribution margin ratio. (Round computations and final answer to 2...
Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along...
Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter’s activity are presented below. Tablet Division MP3 Player Division Total Sales $600,000 $400,000 $1,000,000 Variable costs 420,000 260,000 680,000 Contribution margin $180,000 $140,000 320,000 Fixed costs 120,000 Net income $200,000 Determine sales mix percentage and contribution margin ratio for each division. Sales Mix Percentage Tablet division 60 % MP3 Player division 40 % Contribution Margin...
Hi, I'm in managerial accounting and I'm struggling with this question. Personal Electronix sells iPads and...
Hi, I'm in managerial accounting and I'm struggling with this question. 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 Division Total Sales       $806,400       $473,600       $1,280,000 Variable costs       580,608       265,216       845,824 Contribution margin       $225,792       $208,384       434,176 Fixed costs                       137,376 Net income                  ...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data:...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data:...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data:...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data:...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data:...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and...
Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data:...
Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power...
Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data: Use the rounded values for...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT