Explore BrainMass

Explore BrainMass

    sales level in dollars for each division

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com November 24, 2021, 4:53 pm ad1c9bdddf
    https://brainmass.com/business/sales-revenue/sales-level-dollars-each-division-491393

    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

    ADVERTISEMENT