Question: Looking for help on the following please : Use the following information for items 11-14. Ed Green Corporation has two divisions: Outdoor Sports and Indoor
Looking for help on the following please :
Use the following information for items 11-14.
Ed Green Corporation has two divisions: Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Green incurs $2,420,000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while the Indoor Sports Division has a 50% contribution margin ratio.
- The weighted-average contribution margin ratio is
- 44%.
- 45%.
- 46%.
- 50%.
2. The break-even point in dollars is
- $985,600.
- $4,869,565.
- $4,977,777.
- $5,500,000.
3. What will sales be for the Outdoor Sports Division at the break-even point?
- $2,200,000
- $2,750,000
- $2,921,739
- $3,300,000
4. What will be the total contribution margin at the break-even point?
- $ 960,000
- $1,600,000
- $2,420,000
- $4,960,000
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