Grouper Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variablecosting income statements for the current year are presented below:SalesVariable costsContribution marginFixed costsNet incomeComputers$644,000Sales mix386,400$257,600VG Systems$276,000193,200$82,800Contribution margin ratioDetermine the sales mix and contribution margin ratio for each division.ComputersTotal$920,000579,600340,400172,050$168,35070 %60 %Weighted-average contribution margin ratioVG SystemsCalculate the company's weighted-average contribution margin ratio.30 %30 %%

CONTRIBUTION MARGIN Contribution Margin is the Difference Between Total Sales & Variable Cost.…

Grouper Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Sales Variable costs Contribution margin Fixed costs Net income Computers $644,000 386,400 $257,600 Sales mix VG Systems $276,000 Contribution margin ratio 193,200 $82,800 Total $920,000 579,600 Determine the sales mix and contribution margin ratio for each division. Computers 340,400 172,050 $168.350 70 % 60 % VG Systems Calculate the company's weighted-average contribution margin ratio. Weighted-average contribution margin ratio 30 % 30 % %

Grouper Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Sales Variable costs Contribution margin Fixed costs Net income Computers $644,000 386,400 $257,600 Sales mix VG Systems $276,000 Contribution margin ratio 193,200 $82,800 Total $920,000 579,600 Determine the sales mix and contribution margin ratio for each division. Computers 340,400 172,050 $168.350 70 % 60 % VG Systems Calculate the company's weighted-average contribution margin ratio. Weighted-average contribution margin ratio 30 % 30 % %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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