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:

Factor's Price

The cost of utilizing factors of production like labor, land, and capital in the process of manufacturing.

Factor's Marginal Product

The additional output that results from the use of one more unit of a production factor, holding other factors constant.

Factor Of Production

An input used in the production of goods or services, including labor, capital, land, and entrepreneurship.

Complements

Goods or services that are used together such that an increase in the price of one causes a decrease in the demand for the other, like coffee and sugar.