Use the Following Information for Questions

question 30

Multiple Choice

Use the following information for questions
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 $6,660,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.
-The weighted-average contribution margin ratio is

• A) 37%.
• B) 40%.
• C) 43%.
• D) 50%.

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Definitions:

Functional Fit

A measure of how well a particular strategy, process, or system suits the operational needs of an organization.

Concept Of Fit

The degree to which an individual's skills, values, and interests align with the culture and requirements of an organization or a specific job.

Strategic Framework

An overarching structure that guides the planning and decision-making processes within an organization.

Compensation

Financial and non-financial rewards given to employees in exchange for their work and service.