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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%.
-What will sales be for the Sporting Goods Division at the break-even point?
Interest-free
Financial arrangements or loans that do not require the borrower to pay any extra amount over the principal borrowed amount.
Financial Institution
An organization that provides financial services, such as banks, insurance companies, and investment firms.
Suppliers
Entities or individuals that provide goods or services to another business, often as part of a supply chain.
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