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Ed Crane Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Crane
Ed Crane Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Crane incurs $2370000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 20%, while for the Indoor Sports Division it is 50%. What will sales be for the Outdoor Sports Division at the break-even point?
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| $2962500 |
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| $3703125 |
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| $2844000 |
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| $4443750 |
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