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.

  1. The weighted-average contribution margin ratio is

  1. 44%.
  2. 45%.
  3. 46%.
  4. 50%.

2. The break-even point in dollars is

  1. $985,600.
  2. $4,869,565.
  3. $4,977,777.
  4. $5,500,000.

3. What will sales be for the Outdoor Sports Division at the break-even point?

  1. $2,200,000
  2. $2,750,000
  3. $2,921,739
  4. $3,300,000

4. What will be the total contribution margin at the break-even point?

  1. $ 960,000
  2. $1,600,000
  3. $2,420,000
  4. $4,960,000

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