Use the Following Information for Items

question 88

Multiple Choice

Use the following information for items
Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports.The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports.Green incurs $2,420,000 in fixed costs.The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%.
-What will sales be for the Outdoor Sports Division at the break-even point?

• A)$2,200,000
• B)$2,750,000
• C)$2,921,739
• D)$3,300,000

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Definitions:

Monetary Tool

Instruments used by central banks to control the supply of money in the economy, impacting interest rates and overall economic activity.

Open-Market Operations

These are actions, like buying or selling government bonds, undertaken by central banks to control the money supply and interest rates.

Price-Earnings Ratios

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

S&P 500 Index

An American stock market index based on the market capitalizations of 500 large companies listed on stock exchanges in the United States.