Overbay company has two divisions sporting goods and sports

Reference no: EM13588749

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

a. 1,642,800

b. 10,325,852

c. 11,100,000

d. 12,000,000

2. What will the 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

3. What will be overbay's total contribution margin at the break-even point?

a. 3,820,466

b. 4,440,000

c.4,480,000

d. 5,160,000

Reference no: EM13588749

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