Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Bakery Shop has two separate divisions: cupcakes and wedding cakes. The cupcake division has a 70% sales mix and a 20% contribution margin ratio.
The Bakery Shop has two separate divisions: cupcakes and wedding cakes. The cupcake division has a 70% sales mix and a 20% contribution margin ratio. Meanwhile, the wedding cake division has a 30% sales mix and a 40% contribution margin ratio. The whole shop brings in $250,000 in sales. What is the weighted-average contribution margin ratio for the shop assuming that sales mx is based upon total sales dollars
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