Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $4,440,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is A) 37%. B) 40%. C) 43%. D) 50%

Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is

 

65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $4,440,000 in fixed

 

costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it

 

is 50%. The weighted-average contribution margin ratio is

 

A) 37%.

 

B) 40%.

 

C) 43%.

 

D) 50%

 

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