Use the Following Information for Questions

question 87

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%.
-What will be the total contribution margin at the break-even point?

• A) $5,730,699
• B) $6,660,000
• C) $6,720,000
• D) $7,740,000

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Definitions:

Connective Tissue

Tissue in the body designed to connect, support, or isolate various organs and tissue types.

Adrenal Cortex

The outer part of the adrenal gland that produces steroid hormones which regulate metabolism, immune response, and salt and water balance.

Water-Soluble Peptides

Molecules composed of short chains of amino acids that are soluble in water, playing various roles in biological processes including signaling and regulation.

Mineralocorticoids

A class of steroids, including aldosterone, that are produced by the adrenal cortex and regulate electrolyte and water balance.