Question
Vaughn Manufacturing has two divisionsStandard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available:
Vaughn Manufacturing has two divisionsStandard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available:
| Standard Division | Premium Division | Total | |
| Sales | $400000 | $600000 | $1000000 |
| Variable costs | $320000 | 420000 | |
| Contribution margin | $80000 | $180000 | |
| Total fixed costs | $300000 |
What is the weighted-average contribution margin ratio?
|
| 50% |
|
| 44% |
|
| 26% |
|
| 15% |
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College Accounting Chapters 1 24
Authors: Douglas J. Mcquaig, Patricia Bille, Tracie L. Nobles
10th Edition
1439037752, 9781439037751
