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Kale Garden Supply Company has two divisions: indoor plant division and outdoor plant division. 20% of the sales are from indoor plant division and 80%
Kale Garden Supply Company has two divisions: indoor plant division and outdoor plant division. 20% of the sales are from indoor plant division and 80% of the sales are from outdoor plant division. Other useful information is shown in the table below. Calculate Kale Garden Supply Companys weighted average contribution margin ratio.
0.4
0.3
0.32
None of the above.
Indoor Plant Division Outdoor Plant Division Sales Variable costs Contribution margin Sales mix percentage (Division sales - Total sales) $ 200,000 120,000 $ 80,000 $ 800,000 560,000 $ 240,000 Total $1,000,000 680,000 $ 320,000 $ 200,000 $1,000,000 = = .20 $ 800,000 $1,000,000 = = .80Step by Step Solution
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