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Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
R-100 R-200Selling price per unit $45 $60Variable costs per unit $15 $24
Traceable fixed expenses $250 000 $360 000
Pennington has common fixed expenses of $250 000 per year. Last year, the company produced and sold 30 000 units of R-100 and 20 000 units of R-200.
What is the segment margin ratio of the R-200 product line?
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