Solved

Use the Following Information for Questions
MacCloud Industries Has

Question 25

Multiple Choice

Use the following information for questions
MacCloud Industries has two divisions-Standard 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 $400,000$600,000$1,000,000 Variable costs 280,000360,000 Contribution margin $120,000$240,000 Total fixed costs $300,000\begin{array}{lll}&\text { Standard Division }&\text { Premium Division } & \text { Total }\\\hline\text { Sales } & \$ 400,000 & \$ 600,000&\$1,000,000 \\\text { Variable costs } & 280,000 & 360,000 \\\text { Contribution margin } & \$ 120,000 & \$ 240,000\\\text { Total fixed costs }&&&\$300,000\end{array}
-What is the weighted-average contribution margin ratio?


A) 34%
B) 35%
C) 36%
D) 50%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q20: For Buffalo Co., at a sales level

Q21: The one primary difference between variable and

Q22: Margin of safety in dollars is<br>A) expected

Q23: Contribution margin is the amount of revenue

Q24: Cost structure<br>A) refers to the relative proportion

Q26: The difference between absorption costing and variable

Q27: In a CVP income statement, a selling

Q28: A cost structure which relies more heavily

Q29: Ramirez Corporation sells two types of computer

Q30: Use the following information for questions <br>Swanson