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Question 34 Ed Sheffield Corporation has two divisions; Outdoor Sports and indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor
Question 34 Ed Sheffield Corporation has two divisions; Outdoor Sports and indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Sheffield incurs $2520000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 20%. What will sales be for the Outdoor Sports Division at the break-even point? $3150000 $1575000 $ 7560000 O $4725000
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