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What will sales be for the sporting goods division

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Reference no: EM132528138

Question 1: Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $7955000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point?

Option 1: $7525000.

Option 2: $6450000.

Option 3: $12025000.

Option 4: $13975000.

Reference no: EM132528138

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