Multiple Choice
Use the following information for items
Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports.The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports.Green incurs $2,420,000 in fixed costs.The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%.
-What will sales be for the Outdoor Sports Division at the break-even point?
A) $2,200,000
B) $2,750,000
C) $2,921,739
D) $3,300,000
Correct Answer:
Verified
Correct Answer:
Verified
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