Solved: The contribution margin ratio for sporting goods is 30, Accounting Basics

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The contribution margin ratio for sporting goods is 30

Question - Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $4,440,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.

Compute the break-even point in dollars?

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Accounting Basics: The contribution margin ratio for sporting goods is 30

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Accounting Basics: The contribution margin ratio for sporting goods is 30

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