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Crane Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 55% for Sporting Goods and 45% for Sports Gear. Crane incurs
Crane Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 55% for Sporting Goods and 45% for Sports Gear. Crane incurs $6670000 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
30%.
39%.
41%.
40%.
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