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Determine the total contribution margin at break-even point

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Reference no: EM132541003

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%.

Question 1: What will be the total contribution margin at the break-even point?

Group of answer choices

Option 1: $4,960,000

Option 2: $ 960,000

Option 3: $2,420,000

Option 4: $1,600,000

Reference no: EM132541003

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