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Bramble Corp. has two divisionsStandard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available:
Bramble Corp. has two divisionsStandard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available:
Standard Division | Premium Division | Total | |
Sales | $400000 | $600000 | $1000000 |
Variable costs | $300000 | 330000 | |
Contribution margin | $100000 | $270000 | |
Total fixed costs | $300000 |
What is the weighted-average contribution margin ratio?
- 33%
- 50%
- 25%
- 37%
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