Question
Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports.
Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Green incurs $2,420,000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%. The breakeven point in dollars is: a. $985,600. b. $4,869,565. c. $4,977,777. d. $5,500,000. e. None of the above.
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
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