Solution-Segment margin ratio of the r-200 product line

Segment margin ratio of the r-200 product line

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Reference no: EM131796958

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-200
Selling price per unit $45 $60
Variable 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?

Reference no: EM131796958

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Segment margin ratio of the r-200 product line

Reference no: EM131796958

Reference no: EM131796958

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