Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry A. Weygandt, Paul D. Kimmel, Donald E. Kieso

11th Edition

1118751752, 978-1118751756

More Books

Students also viewed these Accounting questions

Question

What are the approaches to HRM evaluation?

Answered: 1 week ago