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Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 80% for Sporting Goods and 20% for Sports Gear, as determined
Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 80% for Sporting Goods and 20% for Sports Gear, as determined by total sales dollars. Vaughn incurs $8500000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales revenue be for the Sporting Goods Division at the break-even point?
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$5000000
$7500000
$20000000
$14782609
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