Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year:

Required
a. What is the weighted average contribution margin ratio?
b. What level of sales is needed to earn a profit of $600,000 assuming the current mix? (Round to the nearest dollar.)
c. Wilde Home & Garden places an advertisement in the local paper each week. All else equal, which department would you emphasize in the advertisement? (Round to 2 decimalplaces.)

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Total Dept.A $270,000 110,000 Contribution margin 160,000 Less fixed costs 70,000 $ 90,000 Dept.B $855,000 520,000 335,000 Dept. C $910,000 710,000 200,000 Sales Less variable costs $2,035,000 1,340,000 695,000 Profit $245,000 $105,000 440,000