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Swanson Company Has Two Divisions; Sporting Goods and Sports Gear

Question 61

Multiple Choice

Swanson Company has two divisions; Sporting Goods and Sports Gear.The sales mix is 65% for Sporting Goods and 35% for Sports Gear.Swanson incurs $4,440,000 in fixed costs.The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.
-The weighted-average contribution margin ratio is


A) 37%.
B) 40%.
C) 43%.
D) 50%.

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