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# sales level in dollars for each division

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Determine the sales level in dollars for each division at the break even point.
Sales Mix Percentage
iPad Division = 600,000 / 1,000,000 = 60%
iPod Division = 400,000 / 1,000,000 = 40%

Contribution Margin Ratio
iPad Division = 180,000 / 600,000 = .30
iPod Division = 140,000 / 400,000 = .35

Weighted Average Contribution Margin
iPad Division = .3 x .6 = .18
iPod Division = .35 x .4 = .14
Total = .32

Break Even Point in Dollars
Fixed Costs = 120,000
Weighted Average Contribution Margin = .32
120,000 / .32 = \$375,000

#### Solution Preview

Determine the sales level in dollars for each division at the break even point.
Sales Mix Percentage
iPad Division = 600,000 / 1,000,000 = 60%
iPod Division = 400,000 / 1,000,000 = 40% ...

#### Solution Summary

The sales level in dollar for each division is examined.

\$2.49