EXERCISE 4-19. Multiproduct, Contribution Margin Ratio Saldina Hardware is organized into three departments. The following sales and cost data are available for the prior year:

Department A Department B Department C Total Sales $265,000 $850,000 $900,000 $2,015,000 Less variable costs 106,000 510,000 720,000 1,336,000 Contribution margin 159,000 340,000 180,000 679,000 Less fixed costs 60,000 85,000 92,000 237,000 Profit $ 99,000 $255,000 $ 88,000 $ 442,000 Required

a. What is the weighted average contribution margin ratio?

b. What level of sales is needed to earn a profit of $500,000 assuming the current mix?

c. Saldina Hardware places an advertisement in the local paper each week. All else equal, which department would you emphasize in the advertisement?