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:

Automatic Mind

The aspect of cognitive functioning that operates below conscious awareness, guiding quick and effortless judgments and behaviors.

Unwanted Thought

Intrusive ideas or images that are deemed unwelcome or disturbing, often occurring involuntarily and causing distress.

Suppress

To forcibly put an end to or restrain; to inhibit an action or process.

Priming

A psychological effect in which exposure to a stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.