Question
Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year: Dept.A Dept.B Dept.C Total
Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year:
Dept.A Dept.B Dept.C Total Sales $294,000 $850,000 $964,000 $2,108,000 Less variable costs 125,000 566,000 767,000 1,458,000 Contribution margin 169,000 284,000 197,000 650,000 Less fixed costs 67,200 87,400 96,200 250,800 Profit $101,800 $196,600 $100,800 $399,200
What is the weighted average contribution margin ratio? (Round answer to 4 decimal places, e.g. 0.5212.)
Weighted average contribution margin ratio?
What level of sales is needed to earn a profit of $584,000 assuming the current mix? (Round answer to the nearest whole dollar, e.g. 5,275.)
Sales required?
What is the contribution margin ratios of the three departments? (Round answers to 2 decimal places, e.g. 15.25.)
Contribution margin ratio Department A ? Department B ? Department C ?
Wilde Home & Garden places an advertisement in the local paper each week. All else equal, which department would you emphasize in the advertisement?
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