1. Ed Sunland Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 70% for Outdoor Sports and 30% for Indoor Sports. Sunland incurs $2214000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%. The break-even point in dollars is

$3162857.

$7380000.

$10542857.

$5148837.

2.

Brad Marigold Corporation sells two types of computers; one is designed for audio applications and the other for video applications. Marigold incurs $301800 in fixed costs. Per-unit data on the two products is presented blow:

Unit data	Audio computer	Video computer
Selling price	$1530	$1740
Variable costs	1050	1170
Contribution margin	$480	$570
Sales mix	75%	25%

The weighted-average contribution margin is

$502.50.

$525.00.

$1147.50.

$405.00.