Question
Ed Bonita Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Bonita
Ed Bonita Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Bonita incurs $2490000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 20%, while for the Indoor Sports Division it is 50%.
What is the total contribution margin at the break-even point?
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
1118334329, 978-1118334324
