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What is the weighted contribution margin ratio

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Question - Ed 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 on fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%. What is the weighted contribution margin ratio?

Reference no: EM133106869

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