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Swanson Company Has Two Divisions; Sporting Goods and Sports Gear

Question 58

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%.
-What will sales be for the Sporting Goods Division at the break-even point?


A) $3,600,000
B) $4,200,000
C) $6,711,628
D) $7,800,000

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