Problem-
Darth Company sells three products. Sales and contribution margin ratios for the three products follow:
|
|
Product X
|
Product Y
|
Product Z
|
|
Sales in dollars
|
$24,000
|
$44,000
|
$104,000
|
|
Contribution margin ratio
|
38%
|
33%
|
8%
|
Given these data, the contribution margin ratio for the company as a whole would be:
a. 19%
b. 36%
c. 26%
d. It is impossible to determine from the data given.
Additional requirement-
The problem belongs to Basic Accounting and it discusses about evaluation of contribution margin ratio.