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15. ZZZ Inc. has two divisions. Contribution margins for Divisions A & B were $60,000 and $80,000 respectively. Division A has a contribution margin ratio
15. ZZZ Inc. has two divisions. Contribution margins for Divisions A & B were $60,000 and $80,000 respectively. Division A has a contribution margin ratio of 40% while Division B has a contribution margin ratio of 20%. | |||||||||||||||||
Total fixed costs were $100,000 of which $20,000 were common fixed costs. The remaining fixed costs were allocated as follows: 40% to Division A and 60% to Division B. What were ZZZ Inc's total sales for the period? | |||||||||||||||||
a) 120000 | |||||||||||||||||
b) 100000 | |||||||||||||||||
c) 300000 | |||||||||||||||||
d) 550000 |
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