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Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs
Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. 4. The weighted-average contribution margin ratio is a. 37%. b. 40%. c. 43%. d. 50%. 5. The break-even point in dollars is a. $821,400. b. $5,162,791. c. $5,550,000. d. $6,000,000. 6. What will sales be for the Sporting Goods Division at the break-even point? a. $1,800,000 b. $2,100,000 c. $3,355,814 d. $3,900,000 7. What will be the total contribution margin at the break-even point? a. $1,910,233 b. $2,220,000 c. $2,400,000 d. $2,580,000
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