Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sorento Company has two divisions: Sporting Goods and Sports Gear. The sales mix is 35% for Sporting Goods and 65% for Sports Gear. The company
Sorento Company has two divisions: Sporting Goods and Sports Gear. The sales mix is 35% for Sporting Goods and 65% for Sports Gear. The company incurs $70,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What is the company's weighted-average contribution margin ratio? (Enter ratio in percentage format and round final answer to 2 decimal places, e.g., enter 35.12 to represent a percentage of 35.12%.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started