Weighted-average contribution margin ratio

Reference no: EM13160545

Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is:

A) 37%.

B) 40%.

C) 43%.

D) 50%.

Reference no: EM13160545

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