Thursday 8 November 2012

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%. What will sales be for the Sporting Goods Division at the break-even point? A) $3,600,000 B) $4,200,000 C) $6,711,628 D) $7,800,000

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%. What will sales be for the Sporting Goods Division at the break-even point?

 

A) $3,600,000

 

B) $4,200,000

 

C) $6,711,628

 

D) $7,800,000



CLICK HERE TO GET THE ANSWER !!!!

No comments:

Post a Comment