Problem - Refer to the Pennington Products information below.
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
|
$26
|
|
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?