Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year:

Required
a. What is the weighted average contribution margin ratio?
b. What level of sales is needed to earn a profit of $440,000 assuming the current mix?
c. Wilde Home & Garden places an advertisement in the local paper each week. All else equal, which two departments would you emphasize in the advertisement? Explain.

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Dept. C Total Dept. A Dept. B Sales Less variable costs Contribution margin Less fixed costs Profit $450,000 270,000 180,000 $750,000 $1,800,000 1,170,000 $600,000 450,000 150,000 450,000 630,000 300,000 100,000 70,000 90,000 $ 60,000 $ 370,000 $200,000 $110,000