Use the Following Information for Questions
MacCloud Industries Has

question 25

Multiple Choice

Use the following information for questions
MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: $\begin{array}{lll}&\text { Standard Division }&\text { Premium Division } & \text { Total }\\\hline\text { Sales } & \$ 400,000 & \$ 600,000&\$1,000,000 \\\text { Variable costs } & 280,000 & 360,000 \\\text { Contribution margin } & \$ 120,000 & \$ 240,000\\\text { Total fixed costs }&&&\$300,000\end{array}$
-What is the weighted-average contribution margin ratio?

• A) 34%
• B) 35%
• C) 36%
• D) 50%

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