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 be the total contribution margin at the break-even point?
A) $ 960,000
B) $1,600,000
C) $2,420,000
D) $4,960,000
Correct Answer:
Verified
Correct Answer:
Verified
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