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Blue 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:
Instructions
(a) Determine the sales mix and contribution margin ratio for each division.
(b) Calculate the company's weighted-average contribution margin ratio.
(c) Calculate the company's break-even point in dollars.
(d) Determine the sales level, in dollars, for each division at the break-even point.
Listed Company
A company whose shares are traded on a public stock exchange, allowing investors to buy and sell shares.
Retail Industry
The sector of the economy that is composed of individuals and companies engaged in the selling of finished products to end-user consumers.
Non-executive Directors
Board members who are not part of the company's day-to-day operations but are responsible for oversight and strategic guidance.
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